CIHM 
Microfiche 
Series 
(Monographs) 


ICMH 

Collection  de 
microfiches 
(monographies) 


'Canadian  Institute  for  Historical  Microreproductions  /  Institut  canadien  de  microreproductions  historiques 


I 


I 


Technical  and  Bibliographic  Notes  /  Notes  techniques  et  bibliographiques 


The  Institute  has  attempted  to  obtain  the  best  original 
copy  available  for  filming.  Features  of  this  copy  which 
may  be  bibliographically  unique,  which  may  alter  any  of 
the  images  in  the  reproduction,  or  which  may 
significantly  change  the  ubual  method  of  filming  are 
checked  below. 


D 


a 
□ 


D 


D 


Coloured  covers  / 
Couverture  de  couleur 


]      I    Covers  damaged  / 


Couverture  endommagee 

Covers  restored  and/or  Ian 
Couverture  restauree  et/ou  pelliculee 


I      1    Covers  restored  and/or  laminated  / 


Cover  title  missing  /  Le  titre  de  couverture  manque 

I I    Coloured  maps  /  Cartes  geographiques  en  couleur 

I      I    Coloured  ink  (i.e.  other  than  blue  or  black)  / 


Encre  de  couleur  (i.e.  autre  que  bleue  ou  noire) 

Coloured  plates  and/or  illustrations  / 
Planches  et/ou  illustrations  en  couleur 


Bound  with  other  material  / 
Relie  avec  d'autres  documents 

Only  edition  available  / 
Seule  edition  disponible 

Tight  binding  may  cause  shadows  or  distortion  along 
interior  margin  /  La  reliure  serree  peut  causer  de 
I'ombre  ou  de  la  distorsion  le  long  de  la  marge 
interieure. 

Blank  leaves  added  during  restorations  may  appear 
within  the  text.  Whenever  possible,  these  have  been 
omitted  from  filming  /  Use  peut  que  certaines  pages 
blanches  ajoutees  lors  d'une  restauration 
apparaissent  dans  le  texte,  mais,  lorsque  cela  etait 
possible,  ces  pages  n'ont  pas  ete  filmees. 

Additional  comments  / 
Commentaires  supplementaires: 


L'Institut  a  microfilme  le  meilleur  exemplaire  qu'il  lui  a 
ete  possible  de  se  procurer.  Les  details  de  cet  exem- 
plaire qui  sont  peut-etre  uniques  du  point  de  vue  bibli- 
ographique,  qui  peuvent  modifier  une  image  reproduite. 
ou  qui  peuvent  exiger  une  modification  dans  la  m^tho- 
de  normale  de  filmage  sont  indiques  ci-dessous. 

Coloured  pages  /  Pages  de  couleur 

Pages  damaged .'  Pages  endommagees 


n 


Pages  restored  and/or  laminated  / 
Pages  restaurees  et/ou  pelliculees 

Pages  discoloured,  stained  or  foxed  / 
Pages  decolorees,  tachetees  ou  piquees 

Pages  detached  /  Pages  detachees 

y      Showthrough /Transparence 

I      I    Quality  of  print  varies  / 


D 

D 


D 


OualJte  inegale  de  I'impression 

Includes  supplementary  material  / 
Comprend  du  materiel  supplementaire 

Pages  wholly  or  partially  obscured  by  errata  slips, 
tissues,  etc.,  have  been  refilmed  to  ensure  the  best 
possible  image  /  Les  pages  totalement  ou 
partiellement  obscurcies  par  un  feuillet  d'errata,  une 
pelure,  etc.,  ont  ete  filmees  a  nouveau  de  fagon  a 
obtenir  la  meilleure  image  possible. 

Opposing  pages  with  varying  colouration  or 
discolourations  are  filmed  twice  to  ensure  the  best 
possible  image  /  Les  pages  s'opposant  ayant  des 
colorations  variables  ou  des  decolorations  sont 
filmees  deux  fois  afin  d'obtenir  la  meilleure  image 
possible. 


This  item  is  filmed  at  the  reduction  ratio  checked  below  / 

Ce  document  est  filme  au  taux  de  reduction  indique  ci-dessous. 


lOx 

14x 

18x 

22x 

26x 

30x 

J 

12x 

16x 

20x 

24x 

28x 

32x 

The  copy  filmed  here  has  been  reproduced  thanks 
to  the  generosity  of: 

National    Library  of  Canada 


L'exemplaire  film*  fut  roproduit  grace  i  la 
gin^rositA  de: 

Bibliotheque  nationale  du  Canada 


The  images  appearing  hare  are  the  best  quality 
possible  considering  the  condition  and  legibility 
of  the  original  copy  and  in  keeping  with  the 
filming  contract  specifications. 


Original  copies  in  ,  'fntsd  paper  covers  are  filmed 
beginning  with  tf  t  .  ont  cover  and  ending  on 
the  last  page  with  a  i.'nted  or  illustrated  impres- 
sion, or  the  back  cover  whan  appropriate.  All 
other  original  copies  are  filmed  beginning  on  the 
first  pege  with  a  printed  or  illustrated  impres- 
sion, and  ending  c.i  the  last  page  with  a  printed 
or  illustrated  impression. 


The  last  recorded  frame  on  each  microfiche 
shall  contain  the  symbol  — ^  (meaning  "CON- 
TINUED"), or  the  symbol  V  (meaning  "END"), 
whichever  applies. 

Maps,  plates,  charts,  etc.,  may  be  filmed  at 
different  reduction  ratios.  Those  too  large  to  be 
entirely  included  in  one  exposure  are  filmed 
beginning  in  the  upper  left  hand  corner   left  to 
right  and  top  to  bottom,  as  many  frames  as 
required.  The  following  diagrams  illustrate  the 
method: 


Les  images  suivantes  ont  *t*  reproduites  avec  le 
plus  grand  soin.  compte  tenu  de  la  condition  et 
de  la  nertet*  de  l'exemplaire  film*,  et  en 
conformit*  avec  les  conditions  du  contrat  do 
filmage. 

Les  exemplaires  originaux  dont  la  couverture  en 
papier  est  imprimie  sont  film*s  en  commencant 
par  le  premier  plat  et  en  terminant  soit  par  la 
derniAre  page  qui  compone  une  empreinte 
d'impression  ou  d'illustration,  soit  par  le  second 
plat,  selon  le  cas.  Tous  les  autres  exemplaires 
originaux  sont  film*s  en  commenpant  par  la 
premiere  page  qui  comporte  une  empreirte 
d'impression  ou  d'illustration  et  en  terminant  par 
la  derniAre  page  qui  comporte  une  telle 
empreinte. 

Un  dee  symboles  suivants  apparaitra  sur  la 
derniAre  image  de  cheque  microfiche,  selon  le 
cas:  le  symbole  — ♦-  signifie  "A  SUIVRE ".  le 
symbole  V  signifie  "FIN". 

Les  cartes,  planches,  tableaux,  etc..  peuvent  etre 
filmAs  d  des  taux  de  reduction  diff^rents. 
Lorsque  le  document  est  trop  grand  pour  etre 
reproduit  en  un  seul  clich*.  il  est  film*  A  partir 
de  Tangle  sup*rieur  gauche,  de  gauche  i  droite. 
et  de  haut  en  bas,  en  prenant  le  nombre 
d'images  nAcessaire.  Les  diagrammes  suivants 
illustrent  la  mdthode. 


1 

2 

3 

1 

2 

3 

4 

5 

6 

MICROCOPY    RESOLUTION    TEST    CHART 

ANSI  and  ISO  TEST  CHART  No    2 


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Carnegie  Endowment  for  International  Peace 

DIVISION  OF  ECONOMICS  AND  HISTORY 

)OHN   BATES  CLARK,   DIRECTOR 


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,♦ 


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PRELIMINARY  ECONOMIC  STUDIES  OF  THE  WAR 


EDITED  BY 
DAVID    KINLEY 

Profctsor  of  Political  Economy,  L'aiveritiy  of  Itliooi* 
Member  of  Committee  of  Rciearch  of  the  EndovmcTit 

No.   10 


WAR  THRIFT 


THOMAS  NIXON  CARVER 

Professor  of  Political  Economy,  Harvard  University 


NEW  YORK 

OXFORD  UNIVERSITY  PRESS 

AMERICAN  BRANCH:  35  WiiT  32iid  Stiiit 
LONDON.  TORONTO    MELBOURNE.  AND  BOMBAY 

1919 


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COPYRIGHT  19  SI 

BY    THE 

CARNEGIE  ENDOWMENT  FOR  INTEKNATIONAI.  PEACE 
•i  Jackson  Placi.  Wajhimgiok.  U.  C. 


EDITOR'S  PREFACE 


This  study  liy  Pniicssor  Carver  on  "  War  Thrift  "  is  published 
too  late  to  be  of  use  to  the  American  pubHc  in  war  time.  Cut  the 
sut)ject  is  one  on  wliich  we.  as  a  people,  have  many  lessons  to 
learn,  even  <n  time  of  peace.  For  that  reason  alone  the  publica- 
tion of  the  study  will  l)e  helpful,  especially  in  view  of  the  excel- 
lent treatment  of  the  subject  by  the  author.  Professor  Carver's 
treatment  is  both  theoretical  and  practical  and  should  be  useful 
in  helpini^  us  to  order  our  public  and  private  affairs  so  as  to  secure 
greater  economy. 

D.WIU  KiNLEY. 

L'nizrrsity  of  Illinois. 


CONTENTS 

CHAPTER  ''^'"■^ 

I     The  Meaning  and  I"uiicti(Jii  of  Tliri ft 3 

IT     Tlie  Place  of  Luxury  in  N'ational  rAf)noniy         ...  14 

HI     Tlie  Illation  of  Thrift  to  War  Economy 25 

IV     The  Relation  of  War  Thrift  to  Reconstruction  after  the 

War -^^ 

V     Compulsory  Thrift ^^ 

\l     The  Ojiiiosition  to  War  Thrift 52 

VII     The  Grounds  of  the  Opposition 61 


wm. 


*«. 


i 


WAR  THRIFT 


m 


1 


CHAPTER  I 


The  Meaning  and  Function  of  Thiift 

Tn  order  to  get  a  clear  idea  of  the  relation  of  tiirift  to  the 
streiigtli  of  the  nation  in  war  time,  it  will  he  necessary  to  analyze 
the  nature  of  thrift  and  its  relation  to  national  economy  in  gen- 
eral. To  hegiii  with,  it  should  he  perfectly  clear  that  thrift  does 
not  mean  the  hoarding  of  money.  To  hoard  money  is  one  oi 
the  most  thriftless  things  one  can  do  with  it.  The  miser  of  ro- 
mance who  kept  his  money  in  a  secret  hoard  where  he  might 
gloat  over  it  and  enj<n-  the  sensations  of  feeling,  hearing  and 
seeing  it  was,  in  the  strictest  possihle  sense,  a  thriftless  consumer 
of  wealth.  Instead  of  using  money  as  a  tool  of  production  or 
instrument  of  husiness,  lie  was  using  it  as  a  means  of  direct 
physical  enjoyment.  To  have  used  it  for  the  adornment  of  his 
body  would  scarcely  ha\e  been  more  frivolous,  thriftless  or  seltish. 

Thrift,  no  less  than  extravagance,  ccjiisists  in  using  money  — 
that  is,  in  spending  it.  The  sole  dit^'erence  is  in  the  purpose  or 
purjioses  for  which  it  is  used  or  spent.  To  spend  money  for 
immediate  and  temporary  gratification  is  extravagance.  To 
spend  it  for  things  which  add  to  one's  power,  mental,  physical, 
moral  or  econrjmic,  is  thrift.  To  spend  it  for  tools  of  produc- 
tion wherewith  one  may  increase  his  productive  power  is  thrift. 
I'or  a  farmer  to  spend  money  on  a  luxurious  automobile,  when 
he  needs  a  tractor  with  which  to  cultivate  his  land,  is  extrava- 
gance. To  spen<l  the  same  amount  of  money  for  a  tractor,  when 
he  needs  one  with  which  to  cultivate  his  land  more  thoroughly 
and  increase  his  productive  power,  is  thrift.  Money  is  spent  as 
trul\-  in  one  case  as  in  the  other.  It  stimulates  business  as  ef- 
fectively in  the  one  case  as  in  the  other.  l^>ut  when  money  is 
spent  extravagantly,  it  adds  nothing  to  the  productive  power, 

3 


WAR    TIIRIIT 


either  of  the  indivithial  or  of  the  nation.  To  spend  it  thriftily 
is  to  add  to  the  productive  power  of  both  the  iniHvidual  and  the 
nation. 

It  is  sometimes  argued,  of  course,  that  if  everybody  spent  all 
his  surplus  income  for  tools  of  production  and  nobody  spent 
anythini,'  for  lu.xuries,  there  would  soon  be  overproduction,  that 
is,  the  community  would  .soon  ha\e  such  a  supply  of  tools  of  pro- 
duction as  to  enable  it  to  produce  more  than  its  thriftv  consum- 
ers were  willinf,^  to  buy.  Whatever  validity  this  argument  mi,!,dit 
have  in  normal  times,  it  would  obviously  not  apply  to  war  con- 
ditions when  the  danger  is  not  of  overproduction  but  of  under- 
I)roduction;  when  the  jjroblem  is  not  h;i\v  to  consume  the  things 
which  are  produced,  but  how  to  produce  the  things  which  are 
necessary  to  the  .salvation  of  the  country,  not  how  to  give  the 
people  the  largest  number  of  pleasurable  sensations,  but  how  to 
develop  the  ma.xitnum  national  strength.  In  this  war  in  i)ar- 
ticular  this  has  been  an  acute  problem.  Kvervwhere  the  crv  has 
been  to  speed  up  production  in  <ir(ler  that  our  soldiers  might  have 
military  supplies,  and  ships  to  transport  them,  and  that  our 
civilian  population  and  that  of  our  allies  might  have  food  and 
other  necessaries  of  life. 

1  he  fear  of  overj)roduction  is  groundless,  even  in  normal  times. 
'1  lie  tendency  in  a  thrifty  conununity  is  for  capital,  that  is,  the 
tools  of  production,  to  increase  and  become  so  abundant  as  to 
reduce  the  rate  of  interest,  giving  the  owners  of  capital  a  smaller 
share  of  the  product  and  conseipiently  giving  the  other  partici- 
pants in  iiroduction  a  larger  share.  In  addition  there  is  a  l.irger 
production  in  a  thrifty  commum'ty  because  such  a  community  is 
well  supplied  with  all  the  tools  and  instrun-.ents  of  production. 
'I  he  danger  that  there  would  be  an  oversi:ppIv  of  capital,  that 
is.  of  tools,  is  counteracted  by  the  tendency  of  interest  rates  to 
fall,  thus  reducing  somewhat  the  inducement  to  save.  The  eco- 
nomic forces  work  in  precisely  the  same  wav  to  check  the 
overaccunmlaticin  of  cajjital  as  they  do  to  check  the  over- 
production of  wheat,  potatoes,  or  anything  eKe.  When  there  is 
a  tendency  toward  the  overproduction  of  wheat,  the  price  tends 


Tin;  .mi;a.\in(;  and  function  ok  tiiriit 


tn  fall  and  this  acts  a>  an  automatic  check  on  further  productmn 
by  reiiiovin;^-  one  of  the  inilucenients  to  the  production  uf  wheat. 

'I'he  theory  tliat  too  much  thrift  would  result  in  overpr(;duc- 
tion  is  precL-eiy  like  the  theory  that  too  much  industry  would 
<lo  the  same  thinj;.  (_)ne  might  argue  that  if  our  moralists  and 
preachers  of  righteousness  continue  to  extol  the  \irtue  of  in- 
dustry and  entourage  all  the  people  to  work  rather  than  to  waste 
their  time  in  sloth  and  idleness,  the  peopie  might  make  the  mis- 
take of  producing  too  much.  Thrift  and  industry  have  \erv 
much  the  same  effect  in  the  long  run  on  the  total  volume  of 
production.  Thrift  is  the  means  by  which  the  community  ei|uips 
itself  with  durable  goods  and  with  the  instruments  of  production. 
The  community  that  spends  all  its  income  for  immediate  gratifi- 
cation can  never  add  to  its  industrial  equipment.  The  com- 
munity that  sjiends  a  part  of  its  income  not  for  immediate  gratiti- 
catioii,  but  for  the  distant  future,  for  things  which  add  nothing 
to  its  immediate  satisfaction  but  which  increase  its  productive 
equipment,  is  a  community  which  grows  in  productive  power 
from  year  to  year  and  from  generation  to  generation.  Indus- 
try without  thrift  is  as  ineffective  as  is  thrift  without  industry. 
The  two  together  form  the  twin  pillars  of  all  industrial  pros- 
perity. 

What  has  been  said  regarding  the  direction  in  which  money 
is  spent  leads  naturally  to  a  consideration  of  the  function  of 
the  spending  of  money  in  giving  direction  to  the  national  energy. 
The  energy  of  a  community  or  a  nation  is  directed  either  by 
authority  or  by  [lersuasion.  Men  either  do  what  they  are  told 
or  what  they  are  persuaded  to  do.  By  persuasion,  howe\er,  is 
meant  not  merely  verbal  argument  and  wheeilling;  it  inchules 
the  lure  of  personal  advantage,  the  desire  of  pleasing  some  one 
whose  good-will  is  esteemed,  and  a  multitude  of  other  things  — 
in  short,  it  includes  practically  everything  which  induces  a  man 
to  act  or  which  supplies  him  motivation,  except  the  fear  which 
lies  back  of  all  authority  .\ot  the  least  important  among  the 
various  forms  of  persuasion  is  the  offer  of  a  reward,  pecuniary 
or  otherwise.     To  offer  a  price  for  a  commodity  or  a  service  is 


WAR    TlliUl  r 


III  atti'inpt  til  iicT^iiadc  miiiic  i  inc  to  proilucc  the  ciinniio(lit\-  i>r 
ti)  rciiikr  tile  ~(.'r\  iic.  Aiiinii!;  all  ireu  ])ciii)lc>  llii>  fnnu  nt  [nv- 
Mia^imi  lias  cniin.'  to  |)la\  a  vcr\  lar.L,'<-'  part  in  the  (lircciion  of 
iiatiiiiial  ciUT^y.  I'lu-  gradual  --uli-thiitiiii  iif  this  I'nrm  of  jicr- 
siiasiiiii  i"or  ;;iiveinnuiit  authority  is  one  of  the  must  signillcant 
earmarks  of  ])roj;ress.  In  a  low  state  of  eivilization  ami  in  a 
militant  socielv  men  do  \ery  Iar,L;ely  what  they  are  ordered  to 
do  liy  L;o\eniment  anthorit).  In  a  hiL;luT  and  freer  state  of 
ei\ilixation  they  do  more  and  morv  what  they  are  jiersnaded  to 
do  liy  till-  ])riees  whieh  are  ot'fered  on  the  market.  A  hi.L;h  price 
for  one  thiiii,'  and  a  low  price  for  another  means  a  lar^e  induce- 
ment lor  the  production  of  one  thiiiL,'-  and  a  smaller  inducement 
for  the  jiroductio!!  of  the  other.  .\  risin<;  price  for  one  thiii^- 
and  a  falliiit;  price  for  another  i-  tiic  attempt  of  the  purchasini; 
ptihlic  to  induce  more  producti\e  eiierp;y  to  hcL^in  iiroducinLT  one 
thinj;  and  less  j)roductive  ener<j;y  to  remain  in  the  production  of 
the  other. 

Su])piise,  for  example,  it  were  a  fore,t:;one  conclusion  that  manv 
more  shoes  were  needed  than  were  in  process  of  [iroduction. 
There  would  he  two  ways  of  increasing,'  the  proihiction  of  shoes. 
In  the  one  case  the  f^overnmeiit  miL^ht  1),\'  its  own  authoritv  order 
an  increase  of  production  and  detail  a  certain  niimher  of  men 
from  other  industries  or  command  them  to  enter  the  shoe-makini,'- 
industry.  In  the  other  case  they  who  want  more  shoes  than  thev 
ha\e.  lie^in  to  hid  for  them  and  olYer  hij^her  prices  in  order  to 
L,'ct  them.  These  hii;her  prices  h,i\  e  the  same  effect  in  redistrihut- 
ini,'  the  lalior  jiower  of  the  country  as  the  ,l;o\  ernment  order  w  i  'Uld 
ha\e  in  the  other  case.  In  order  to  ohtain  these  higher  jirices, 
e.xistin;,'  tactories  would  speed  up.  would  run  overtime,  would 
emi)loy  more  men.  or  cNe  new  factories  would  Ije  built  to  meet 
the  iiicreasint;  dem.and. 

In  case  the  desires  of  the  public  sliould  underpfo  a  considerable 
clianijc.  :uii|  the  people  shoidd  stop  carini;-  for  one  cl.ass  of  com- 
modities and  lie,i;in  caiint,'  intensely  for  an  eiitireh-  ditferent  class, 
ilie  same  alternative  methods  would  present  themselves.  It 
wciuld  be  necessary,  of  course,  in  order  th.it  iiroductiofi  mi<:ht 


'iiii;   Mi:AM\i:   .wn   i  rNrrmx   di-   Tni-mr 


ilju-t  it-cli  til  ihc  (icmaiids  of  tl 


ic  ciinsuimT>  that  fonsidcralile 


]ir(iiliiLti\c  power  >liouM  Ijc  trails icrrcil  cither  directl 


'ir  iiuli- 


rcctl\-    Iroiii   tlie   iiiihi>trv   which 


was 


prod' 


leiiiL'   the  article    Inr 


which  there  is  a  slirink'n-  deiiiaiul  to  the   iiKhi.try  which 
jirochiciiiL;  tlie  ariicle  for  wliich  ther 


was 


<!. 


e  i>  an  cxpaiKliiiL,''  deiiiaiK 
i  hi>  tran^ier  oi  pro<hictive  ])owcr  could  he  ciTecled  hv  <'overn- 


iiKiit  amhorit\-.      Th 
mimlier  of  men  —  k 


overnnient  cotild  'iiereh 


■av  to 


ea\e  this  iiuhistr- 


and 


;o  ami 


,tl 


ler 


precise  I  \-  a^ 


Hers  arc  iMdered  to  traii> 


Ironi  one  jiart  of  the  Held  to  aiioliier.      I 


II  a 


certain 
;  in  the 

efforts 
\\   stale  of  civiliza- 


fer  tl 


lei, 


tioii  this  method  is  used  in  redistrilmtiiiL:  the  forces  of  the  ind 


US- 


trial  aril 


luit  in  al 


iiLMicr  civilization 


the 


.■lh( 


that  of 
oiiijer   cao 


persuasion.     'I'he   article   for   which   the  people  no  1 

will  not  he  hoti^dit  in  lar<,'e  (pinntities  ara!  tlie  people  will  not  lie 


wiliii 


v^  to  ])ay  a  Iiii^h  price  lor  it. 


at  in  itself  will  i)artial 


remove  the  iiuhKxiiient  to  production.     .\  certain  amount  of 


ilucti 


c  power  will  therefore  he  released  from  tl 


us  industr\-. 


I)ro- 
Oi: 


the  other  hand  the  article  for  which  there  is  an  inc 


cai;  not  at  once 


demand, 
want,  aiK 


rcasinj;  demand 
le  supjilied  in  sulVicient  quantities  to  meet  that 
Some  consumers  will   lu.i   he  aljle   to  get  what  thev 
1  they  will  hegin  hiddiiit;  against  one  another  for  the 


limited  sup[)ly.  thus  f 


orcmg  the  price  up. 


h:s  achance  in  price 
manufacturers  and 


is  the  persuasion  wliich  will  lead  in\est( 
lahorers  to  go  into  the  industry   which  jiroduces  the  article  ir 

me,  the  transfer  of  product 


ipicsti 


hus  in  the  course  of  I: 


])ower  from  the  contracting  to  the  expanding  indi 


ive 


:v  IS  made 


:ffect 


i\ely  as  though  it  liad  l)een  made  hv  a  government  ord 


er. 


It  may  he  made  a  little  less  promptly,  hut  much  less  violentlv, 

,n-eatcr  economy.     On  the  hattle 
of  Course,  much  more  impiir- 


with.  less  dislurhancc  and  with 


field. 


promptness  and  secrecv  are 


taut  than  economy.      In  the  industrial  Held,  prominncss  and 


crecv  are  o 


f  1 


That  is  whv  the  teiide 


ess  importance  and  economy  oi  greater  imp(jrtance. 


in  all  advanced  industrial  communities 


toward  the  metliod  of  price  persuasion  and  away   from  the 


me 


th. 


d  ot  g(jveriimcnt  coni])ulsion. 


■etore  we  are  in  a  position  to  understand  the   fundame 


ntal 


8 


w  \ u   r 1 1 1'  1  IT 


(if  tlif  tlirift  'iiu'stion,  it  can  imt  lie  t'ln  mnch  ctnpha'-i/iMl  that 
in  a  free  iiidu^lrial  Micietx  the  \\a\  in  wliieli  the  people  >])eiiil 
their  nii>ne\-  (ietermiiie^  the  direction  in  whieli  the  iiri  iihieti\  e 
enerf^\-  "i  liie  c  iniinuiiity  i>  ntih/ed.  It,  lur  exainple,  nn  dUC 
is  wilh'n.L,'  tn  pureha-e  tnols,  or  in^trunient^  nf  pniductinn,  liut 
e\er\-  une  di'inand^  articles  (if  ininiedi.ue  eni(i_\  meiit.  tnnl^  will, 
of  ciiur~e.  ha\e  no  buyers  and  the  tonl-uiakinL;  industries  will 
ha\c  nd  inducement  tn  expand  or  e\en  tn  Cdutinue.  All  the 
producti\e  eiier,i,'y  will  he  ahsorhed  li_\-  the  luxury-prciducint;  in- 
(iu^trie^  and  e\en  thev  will  lie  pndriv  eipiinped,  hecause  im  one 
will  he  willinsj  to  in\est  in  e(|uipinent.  Where  one  c;''"^'!'  "■ 
people  is  (lcniandin>j  luxuries  for  immediate  consumption  and 
another  S'''"'"P  ''^  willini;  to  inve-t  in  the  tuols  of  productimi, 
tlie  latter  group  may  then  eipiij)  the  luxury-producin;;  industries 
with  tools  in  order  to  jiroduce  for  the  supply  of  the  former 
group.  If  all  were  willing  to  spend  money  on  tools  and  no  one 
were  willing  to  spend  very  much  on  extravagant  frills,  there 
would  he  an  ahutulance  of  tools  for  the  proiluction  of  a'.l  the 
things  ^vhich  would  snjiply  the  moderate  needs  of  the  community. 
\\ith  these  moderate  needs  supplied  by  the  ahundant  productive 
power  of  the  community,  the  people  could  either  work  short 
hours  or  in  a  leisurely  manner,  or  they  could  use  their  ahun- 
dant energy  in  producing  things  of  durable  or  jiennancnt  \aUie, 
such  as  school  buildings  of  avchitectural  beauty,  roads,  irriga- 
tion proiects,  the  drainage  of  swamps  and  various  other  enter- 
prises which  would  provide  for  jiosterity.  enlarge  the  ]vissi- 
bility  of  life  in  the  national  territory,  and  greatly  expand  the 
national  power  and  greatness. 

If  the  people  of  Athens  had  chosen  not  to  adorn  the  Acropolis 
with  architectural  monuments,  they  might  for  a  long  time  have 
consumed  somewhat  more  luxurious  food,  worn  somewhat  more 
costlv  apparel  .ind  amused  themselves  in  somewhat  more  ex- 
pensive wa\-s  That  is,  they  could  1ia\e  devoted  the  national 
cnergv  to  the  production  of  more  luxurious  food,  clothing,  and 
so  forth.  Instead  of  that,  they  chose  to  consume  slightly  less 
luxurious  food  and  slightly  less  costly  clodiing  than  they  might 


Tin:    MI'.WINT,    ANT)    ITVCTIOX    OF    TIIRIIT 


have  had,  in  order  to  creel  those  Iniildin^'s.  wliieli.  if  the  Athenians 
had  di)iie  nnthinj^  el>e,  wuiild  liave  helped  to  justify  their  exi^t- 
cnee.  It  was  the  (hreetion  in  which  they  decided  to  spend  cheir 
iimnev  wliich  decided  whether  the  national  energy  should  he 
Used  in  the  producliun  of  ephemeral  utilities  or  durable  sources  of 
satisfactii.i. 

The  ])eople  of  those  medieval  cities  who  erected  cathedrals 
as  monuments  of  their  religious  faith  could,  if  they  had  chosen 
otherwise,  have  fed,  clothed  and  amused  themselves  in  more 
expensive  \va\  s,  that  is,  the  man-power  which  was  used  in  the 
erection  of  churches  could  have  been  used  in  the  production  of 
objects  of  temporary  gratification.  They  chose  to  sjiend  their 
money  for  (Inral)le  rather  than  for  perishable  goods  and  that  is 
why  the  world  was  enriclied  by  the  religious  architecture  of  the 
mcdie\al  ])eriod.  Any  modern  city  that  chooses  to  get  along 
with  ineffective  school  buildings  can  for  a  few  years  keep  its 
tax  rate  down  slightly  and  the  people  may  therefore  have  a  little 
more  money  to  spend  on  trivi.dities.  If.  on  the  other  hand,  they 
choose  to  build  school  buildings  whose  architecture  will  enrich 
the  world  as  the  church  architecture  of  the  medieval  peri(„l  did, 
they  will  ha\e  to  cut  down  the  amount  of  money  which  they 
would  spend  for  other  things  and  rele:ise  a  certain  amount  of 
productive  energy  from  the  production  of  frills  and  luxuries  and 
make  it  available  for  the  production  of  these  objects  of  durable 
satisfaction. 

\\hetl;er  one  thinks  that  it  was  the  thrift  or  the  extravagance 
of  the  Athenians  which  built  the  Parthenon,  will  depend  upon 
whether  one  thinks  that  the  building  of  the  Parthenon  was  an 
important  thing  to  do  or  not.  If  he  regards  it  as  a  triviality, 
then  he  will  call  the  building  of  it  an  extravagance  and  he 
will  doubtless  think  how  much  better  it  would  have  been  if  the 
Atlieni;ins  had  used  the  same  amount  of  tnoney  in  purchasing  and 
the  same  amount  of  energy  in  producing  things  which  would  have 
fed  their  bellies  or  adorned  their  bodies.  If,  on  the  other  hand, 
he  thinks  that  it  was  a  very  important  thing  to  do  —  niore  im- 
portant than  anything  else  that  they  could  probably  have  done 


to 


WAN     I  MUll  T 


iro 
in 


\|"I'    tlu'ir  mon.v   ;,,„!    ilu-.r   pnulnctn  c   .nor-v.    ho   w.u,l,I    s-,v 
'li;it   II   "as  ilinri   uhul,   |„nlt  tlu>   l',irtlir;i.  .„.      Tlu^  s,,,,,,.  ,,,„.;. 
"■■>i  'ni.Ju  la.  ,h,ni"ol  with  rcsiari  f.  tlir  idi-in,i>  ardiitirti 
'"  ilH'  Mi.Mk.    \^i..  ,,n,l  .h^.  .am.  ,|.K-st„.n,  ,„■  cunr.sc.  ari.c 

t-UTv    ntv    ,,:    t)ic>    ,,rc.cnt    ,lay,    uhcn    il.r    ,,rnl,Kin    ..i'    .rl 1 

a.vh.tirt„ro  ,>  ,l,-n,.-c,l.  Tu  ,„>c  wh„  r.^ani.  mI.,,,,!  ardii- 
'm.,-c.  a.  a  t,•,wahI^,  the  Iniihiiti,^-  nf  maoniluviu  a>„l  udl- 
-'IU.PIH.,1  >,hn„|  nu,l,h„^.  ,..c,n.  at,  .xtfavaK:„uc.  lie  u„„l,l 
'l"tthtk...  regret  that  .,,  t„ud,  ,.n„lucfvc  pnw.T  .h,,„I,l  |,,  „.,,i 
•>>  'Itc'  l.,t,l,l,„,^.  ,„-  Muh  thntKs  ulK.n  ,t  t>„oht  l:c  „,se.l  inr  the  ,„„- 
''"^'"""  '"  """^^  ^^ '•"■''  ""••'<'  .^n.in-y  the  appetite  ,>r  „.,„e  nther 
'^■■•.poran-  .le.n-e.  I;„t  ,„nne  uhnre.anls  seh,,,,!  arehiteC.re 
a>  .nnmhuv^  verv  i.npnrt.uH.  tl,e  erecti,,,,  ,,f  s„ch  sehn,,]  l,,,,'].!- 
■■.i:>  a.  s„„,e  pe,.ple  u,,ul,l  like  tn  .ee  u.u,I,l  l,e  eallcl  an  act  of 
tlinrt. 

Mn.h  the  .an,e  .|,.eMinn.  ,,1'  nuirse.  n.„I,I  I,,  ,li.e,.-e,l    if  Mich 

'"•  n„hv,.h,aK  here.nul  thefe  u  h„  regard  the  u, „,„,„■  „f  ,h,; 
^^ar  a.  a.,  evtrava^janre.  u  hn  rej^ret  the  tlesh  puts  nf  Ki;v,,t  an-l 
v.an,  -r.henni,,,,.  ::n,UarIie„f  ,he,la^.,,reee.h,„,he^var 
';'!•  '"  -;>'■  "hn  ve^anl.  ,he  u.nnin^  ,.f  ,1,,  war  as  the  snpfente 
-'iMeet  n,  ,1„.  ,t;e.,eratinn.  ,,f  .,uh  nnpnrianee  as  „,n  tn  he  n,en- 
t.nne,!  ,n  the  satm'  hreath  Nvi.h  anv  nf  ,1,.  ;  ,,„r,es  wuh  wh.rh 
our  an,a/,n^^  prn.perity  ha>  pn,M.Ie,l  us  ,lnnn^  the  last  .r,„er.- 
t.nn.  spending  .fnttev  n„  ,h,  ^^ar  m.t^a.l  nf  „„  ,h„,,  l,„,,,, 
hixiiries  will  seem  a  very  thriflv  thin-  t,,  ,1,, 

The  .Lreneral  ar-nmu.t  fnr  thrift  n,av  he  s„m,nari.e<l  as  fnl- 
I"ws  :  l^en  n,  tmu-  nf  peace  it  is  a  ;rnn,l  thin:^  fnr  a  man  tn  save 
••m.l  nnes,  a  part  nf  hi,  ,■„,,,„,,.  I,  „  l,,,,,^  f,  „  ,,i„,^,,,-  .^,„,  •  ,^ 
fverO,n,lv  eNe  that  he  >hnnl,l  ,ln  sn  ,l,an  that  he  shnnl.I  sp,,„l 
his  uhnle  mn.me  n„  .hin-s  fnr  imme,liate  cnnsnn.ptinn  In 
time  n,  v.ar  especially  ,t  is  far  hettev  tn  sa^e  and  n,^est  than  tn 
cnnsimie  thiii.;s  whuh  one  dnes  nnt  redlv  need. 

I"  lime  nf  pc,,re  he  uhn  saves  m,.nev.  and  in\ests  it  wi^eh 
does  Inmseh  ,<,.nnd  m  iwn  ways.      I  le  .trains  directly  hv  havin-  an' 


Tin:   Mi'.wixi,    wii  iiNCTinx  ()|-   riiKin- 


II 


iiuiiiin'  111  ;ii!(|itinii  III  lii^  \' aires  or  lu< 


1  If  !/'.itis  indi- 


i-tlv  I 


i\-  makiiiL'  ln'ttvr  inniliti( ■n?,  tor  eviT\lio(l\,  incliulinir  hi 


-ill". 


It    1-    I'U^V    to    NC-C 


that 


he  ■rams  (hrccllv, 


•|o  h 


'.iw  a 


hiindrcil 


lar^  iiuotfil,  even  at  four  ])er  et-iit. 


I)t,'tt(.-r  th.iii  not  to  have 


It 


,L;i\i'>  him   lour  dollar.^  a  year  over  an 

II 


il 


alio 


,ther 


anil   loiir  ilollar>  a  ve.ir,  >niall  as  it  is,  i 


It  to  he  iK 


-1' 


It  is  not  so  ea-'V  to  >ee,  hut  it  i>  none  the  les.>  true,  iliat  saving; 
;inil  wi^e  imestin^'  make  eonditions  hetter  for  everyhod}'  inelud- 
iiii;'  oiie>elf.  ID  >a\e  and  invest,  as  stated  aho\c,  is  not  to  hoard. 
It  i-  to  lni\-  thin;^'s  wliiih  are  needed  for  produetion  or  defense 
in-tead  of  thin<;s  whieh  are  ^ood  only  for  consuin])tioii  or  pleas- 


ure.     Id   litiv   thintrs,   such 


tofils.   machines 


dinirs 


etc. 


which   aid   in   production   is   to  encouraj^e   the   tnakini'  of   such 
thiiifjs.     When  many  peo])le  are  inve^tin^  in  tools,  manv  tools 


he  produced  and  industry  will  the 


11  he  w 


ell  ei|uipped   ..  ith 


In  >hort,  there  will  lie  manv  factories  wel 


aids  to  ])roduction. 

ei|uii)ped   with   huildin,;; 

condition  in  which  there  is  much  employment. 


machines,    and   material 


That 


IS 


a 


( )ne  may  huy  eitlier  directly  or  indirectly  those  tilings  which 


lid  111  i)ro(luction. 


\\h 


en  a  farmer  huys  a  traction  enfriiie 


rath 


er 


than  ,1  lu.xurious  automohile,  he  is  liuying'  directly  a  thiiiij;  which 
aids  ill  production  rather  than  ;in  article  of  coii.sum])tioii.  If  he 
has  liou,L,dit  wisely,  the  traction  entwine  will  aid  him  to  ,u;rou-  a 
larger  croi),  which  is  a  irood  thinsr  for  him.      It  will  also  increase 


the  toi](l 


supply,  which  is  a  fr"of!  thin<;  for  e\  er\ 


lie  more 


farmers  there  are  who  save  money  and  invent  it  in  instruments 
which  .aid  in  production,  the  hetter  pro(hiction  we  shall  have  :uid 


tl 


le  hetter  the  world  will  h 


\\"h 


en  a  factorv  owner  huild 


an  addition  to  his  factorv  rather  than  a  new  dwellinir  house,  he 


i^  l)u\in,L:  directly  \'arious  things  which  aid  in  productic 


m. 


liiiiliK  wi^clv  he  will  add  to  liis  income 


^hich 


If 
id  thi 


lie 


tor 


him. 


It  will  also  add 


to  the  ])rodiicti\-e  power  of  the  com- 


luunity,  \\hich  is  a  good  thing  for  everyhodv.     It  is  a  good  tl 


uiu 


13 


w  \H    r  n  u 1 1  1 


f-in'i'i;ill\  i.ir  l.ilidrcr--  liccan^c  it  will  ii'(inirc  iimre  I.iIkiht-.  i^i 
iiiii  ilic  ciilar^i'il  l'arinr\  than  wire  iiMjuiri'd  1'v1"1l'  it  wa>  cn- 
lai'KC'l.      Ill  -li'TI.  It  iiK  rca^i -^  tlii'  ilcmaiui  i<iv  laliur. 

I  liu  niiic  |ir(.]ilf  tluTc  arc  wlm  save  tlu'ir  m(/iif\  aiwl  \i\\\ 
traetiiis,  iiiaihiiK'-.  lactury  liiiil(|iii;;s  and  .ill  ciliiT  ai(N  to  pri)- 
■  InctHiii.  till.'  luttir  liif  luniinuintx  will  he  ^npiilK-d  \mi1i  all  such 
thint;-.  The  liettci  ihi.'  i(]iiiiminit\  is  Mipplu'd  with  all  surli 
thin.i^s,  the  ■,'re;itcr  its  pnidiiitix  c  iiMucr  and  the  ^,'reaier  ihe  I'p- 
])nrtiinities  tor  |irn<liuti\  e  einiilnyment.  Thai  is  the  reasdn  \\U\ 
lalinrers  alwa.\s  einif^rate  irmn  a  mimtry  where  there  is  httle 
saviiii,'  and  inxestm^f  to  a  eniiniry  where  thrre  is  iinieh  si\iiij^ 
and  iiuestiiiL; 

I'.iit  one  may  Imy  indirectly  thiiij^s  which  aid  in  ])roduction. 
W  hen  one  deposits  money  in  a  saviiif,'s  hank,  the  hank  will  invest 
it.  It  in;i\  lend  it  to  some  farmer  who  wants  to  hii\-  a  tractor, 
a  tc.iiit.  a  cow  or  some  other  aid  to  ]iroduction.  it  niav  hiiv 
part  ownershi])  in  some  factory,  or  in  some  otiier  was'  eiicmir- 
a,L'e  the  hiiyin^'  of  .aids  to  production.  The  sa\er  iiiav  himself 
iiuy  the  share  in  some  corporation.  In  that  case  he  hecomes 
a  ])art  owner  in  the  fact(,ry  or  whatever  it  is  that  the  corjiora- 
tion  owns.  In  .all  the-e  wa\.s,  and  in  many  others,  (Jiie  may  liiv 
indirectly  all  sorts  of  thinj^s  which  .nd  in  iiroduction. 

Indirect  huyin-,'  of  such  thinj^'s  has  the  s.nne  effect  as  direct 
hu.\in^^  It  encouraj,'es  others  to  m.ike  the  tools,  machines,  hiiild- 
inL.;s  .111(1  other  thinj^s  whicii  .aid  in  [iroductioii.  XcIhmIv  wuiild 
make  s.ich  things  unless  somehody  would  huy  and  p.av  lor  then;. 
The  only  pet)ple  who  hu\  ;ind  pay  for  them  are  they  who  save 
and  invest,  who  huy  fewer  articles  of  coiisuinijtion  than  ihev 
ini|;ht  huy,  .and  spend  the  money  thus  saved  tor  thin,i;s  which  ,iiil 
in  ])roduclion.      That  is  what  it  means  to  save  and  inve-t. 

■|  hese  rea-ons  in  fa\('r  of  saving,'  and  investin.i,'  are  maiiv 
times  stronj:^er  in  time  of  war  than  in  time  of  peace.  In  time 
of  war  it  is  of  the  utmost  impo-tance  th.at  the  materials  and 
tlie  iii.in-power  of  the  country  he  conserved,  Thev  need  to  he 
Used  for  national  defense  rather  than  to  produce  iliin!.,fs  for 
lMi\ate  eiijoxment  hexond  what  is  necessary  for  hialth,  streHLrth 


Mil.     Ml  AMNi,    AND    riNiTKiN    IH-    TIIKIir 


•iiiil  cHiiu-iK).  I  lie  way  U>  H'ii-.cr\u  llioc  tiling-  aiul  lurii  tluiu 
t(i  ii.itiMiial  latluT  than  prnati-  ii--c>  I-.  tHr  all  ni  u^  in  ]m\  Icwcr 
ilini),"'  wliuli  \\c  ilii  not  iicftl.  Wc  ^liall  lluii  ii'(|nnc  tcucr  ma- 
tiri.il-'  anil  Ic^h  iiiaii-iiowtT  tn  mini^ttT  to  our  c)\vii  ^^'ratilKalioii. 


11    Wi- 


lms   lilicitv   lioniK   wo 


ill   h 


lavc  lc-.>  iniiiu\    to 


oil  our^fhi-^.      I'Ut 

lie    ^]ilMlt.         I  111-    ^( 

wliuli  it   iR-rd 
it.   It   will   -tiiiinlati.-  i1k'   kiml- 
,1 


iln>  iloi-.  not  int-an  thai  the  iikjiu 


.1 

ill  not 


viTiiini-nt  w  ill  lia\  c  it  ti 


-|)Cllll     I'l 


lor  (jnr  (IcU'ii^c. 


\\1 

it     1)U 


K-n  the  j;oviTiinR'iil  s|icnils 


ir  llu'  tliiiii,'s 


linens   wliich   he 


war.  wluTfas  it   wc  •^pi-iid  it  on  our^clve 


it   will  .-.ti 


l)ii>ine>sfs  whuh  use  tor  other  purposes  the  iiiatenals  am!  niaii- 


p  \'  111  the 
iiuilaie  the 
.1 


power  which  the  i.,'o\ eminent  needs  I'or  it■^  su])renie 
It  the  j,'o\ eminent  spends  the  nione\-,  it  will  j,'i\e  as  i 
plovment  to  lahor  .a-'  it  Wduld  if 
ditVereiiee  will  he  that  the  jjovernnieiit 


te  si)ent   it  on  ourse 


niKli  ein- 
Ke-- ;  the 


einplo\  lahor  in  ways 
th.it  hel])  win  the  w.ir,  whereas  we  would  employ  labor  in  ways 
that  wonlil  not. 

To  iinesi,  as  stated  a!)o\e.   is  to  spend  nione_\-   tor  thitij^s  of 
\ital  and  ])erniant"'L  value  rather  than   for  thing's  of  tritliii);  or 


temp 


ar\'  \'\ 


lue.      Some  of  the  most  needed  investments  at  the 


present  time  are  war  saviu<js  stamjjs  and  liherty  Ixinds.      Ti 


a  liliertx    lioiid   is   certainlv   better  than   not   to  own   it. 


]. resent  time,  it  is  not  only 
better  tor  the  whole  coiintr 


better  tor  vou,  it 


.ilso  \e 


.\t   the 
rv  much 


(I  the  world  thai  vou  should  b 


liberty  IkiiuIs  th.in  that  yon  should  buy  articles  of  consumption 


w  liicli  voii  do  no 
much  to  have  them 


t  reallv  need,  even  though  vou  would  like  very 


1  f  vou  buv  libertx 


hOIK 


Is.  tit 


o\ernment 


I'll,]  that  money  io  hire  men  to  build  ships,  make  f^nns  aiu 


atniiuinition  and  do  whatever  else  i 


necessarv  for  the  defense 


ol  tlie  iihertv  o 


f  th' 


e  wo 


rid.      It  is  better  for 


thi 


that 


than  that  vou  sin 


should   spend    vour   money    ini 


ml  for  e\er\- 
lirectlv    for   these 


)end  it  diree 


tlv  for  some  article  ot 


Consumption  which  docs  you  no  real  or  lasting  good. 


CHAPTER  II 

The  Place  of  Luxury  in  National  Economy 

Siiumrir  a-,  well  ,1^  |)i'|iiil.ii  cll^^u^^l■l||  |,  .-(iiiR'w  lial  dniilrd  on 
llu'  i|iif-ii.iii  d'  liiMiry  and  il-^  cIIihi  iiimn  n.iliniiai  pK  i-pi'i  ii  v. 
Xnt  iniirh  luMd'va\  can  1  c  inadi^  in  cloarini,'  np  ihi^  (Ii-i-in>ii  m 
with. ml  -.  me  attfnii.m  In  '  linitp.ns.  Ad.iin  Simlli  dillnrd  lii\- 
urif.  a>  aitiilf-  wliiili  x-.iic  wIimHv  ni  ilttr-  ni  iiuliMdnal  ill- 
(hil,i,aMU-i'  and  nni  di-tnandcd  t-iilicr  liy  llu'  pli\>nal  health  am! 
sirtii-tli  .'i'  \\\c  pL-i.plf  nr  li\    ilk'  rnli'^  i<\   -mit'tw      (  )thcr^  liave 

niaiK'  a  -cpaiatc  cla^--  <>\   l; N  called  diri-mic-.  wiiicli  includes 

e\ei\llnnL,'  pre-ciihed  li\"  tlic  rnle^  nt"  ^ncictv.  imt  ni  H  nece^sarv 
eiliier  In  tile  ph\^:cal  iieallii.  -.|ieiii;tli  nr  cninl'nrt  nl  the  pei'|)le. 
Ihe  duidniL;  hue  Netwecn  (leccncie^  nr  ln\une^  i^,  linuever,  a 
\ery  nli-cme  anil  waxiiin^;  nne,  \\  li  it  are  ineanl.  ior  i'\aniple, 
li)  tile  laile^  i>i'  ^ncicly'  I  )(i  the\  inclnde  uu'ieK  thu-e  Inniis 
lit  11  iii-.ninptii  in  whicii  are  dcPiaiided  with  practical  niiivei -alitv 
liy  all  nieniliei^  i.|'  a  ci  iinmiinit\ ,  ur  do  iliev  include  wliatever 
one'--  particular  cla--s  nr  --et  riijariK  a>  prnjier  t'  'r  it^  meniher- ? 
It  a  per-nn  lielnii'^^,  t'nr  example,  tn  a  small  j^nui])  of  >|)end- 
tliril'ts.  lie  iiia\,  cl  iiin  that  the  rule^  iti  liN  -ncial  turnup  mmpel 
hull  tn  ^iicnd  iiinne\  la\i-hl\-  nii  tliin;;^  which  nther  i^rnup-, 
WDuld  regard  a^  pure  liixnrie-;.  'Iherernrc.  he  mi,i,dlt  jii-til\- 
himseli  mi  the  L;rnnnd  that  tlic-e  articK'-  ni  cnn>umptinn  are  to 
him  mily  decencies.  If  we  ijn  ^d  far  a^  tin-  in  mir  deliuitinn  nf 
decencies,  we  -hall  liud  that  lliere  are  ]iracticall\  nn  luxuries  in 
the  wnihK  It  wniilil  -eeni  lielter.  tlierelnre,  tn  ciiiiliiie  nur  delitii- 
tinii  n\  ilecciuie~  In  tlm-e  thint;s  whicii  are  ]ire-.i.'rilieil  li\  the 
alnin-t  uni\eisal  cniiseiisUs  nf  n|iininn  tlin  lULjhnut  Hn'  natmn  at 
the  lime.  I  hu-.  in  \iiHTica.  fm-  I'xample.  it  wniiM  !)!■  ,dnin-t 
unuers.all',  thnuijht  indecent  tnr  a  man  tn  ap])ear  m  ])u!ilic  p'.ices, 

1) 


I II  I.  n  \<  I    111    I 


■\l    U\     l\     \  \  I  |ii\  \l      I  I  ii\n\l  N 


lluT,   \\  lllli  'lit    -h' 


t\(II    II'    \V  .11  III    W  I'.l 

wai^l  ^liiil    II 

I'l.r  .1  111. Ml  t'l  .ijii't-ar  m  .iii\   |i 

Ii-t   wciilicr  wiili'iut  .1  1' 


(■-       r.il"U'  llu-  .i'ImiiI  "f  iIk' 
(ii'l   ,i>    iiii|ir"|icr   "I    iiiilcifiit 


III. Ill'  iiKlciiir--  I 


\  III    111    IIU'   111  it- 


iiiw  I  \  IT,  icil.iiii  lai  ;;<■  -f 


It       \\  itli   the  -|)ri'.i(l  ni    inttlliiji'iu'i-, 
ii'  tlu-  riiiiii!r\   li.nc  iiulhrii'il  tin-. 


■limi^ 


aii'iii  I 


1  riiK 


11 


liiU'r\    I- 


niif 


ll.lt    l\Cl  >.     Wnlll.lll    --IMII   I 


(■\  I'll  anil  111 


iii^~c>>  c'l'itain  .11 


tuK 
li 


•^  tlu'  ])iiiirr-t  III'  iiiir  iiiM'iik-.       ill   Hi- 
ll' .ill   Muh  aituK-   III   iiiii-iimiiiiiiii   nil 
the  ^;r(iiiiiil  iliat   i1h\\   aic  liisuiii--  umild  pi'iiliRc  a  l:  ■  .it   ^IkkI; 
1  wiiiilil  lif   iu>tirK'(l  Hilly  nil  llic  j;riiimiU 


vi>t    III!    tlif   I'liiiiiiiatii  111 


to  mir  ^iH  lal  ti'i'lini. 


•  UK 


'I  till'  nin-t  (lire  iH-ri'-  .it\ . 


I   W  I'  \\  I.' 


ri'  thrc.ili'iu-il  w  itli 


ili-i'l 


f.ie 


ailinif.  .iliil  nltr  ll.itii  ili.il   cM^tclur 


ilf|K'iiiU(|  \i|i'  III  n-iliu  111^ 


riiii>tiiii 


iitiiiii   to  tlif   very    Inwi^t    |iii^--ilik-   niiiiiimiin.   c'\<ii   tlic  c 


;nlKlc-<   of   coii^iiiiijjtioii    will 


111   h 


In   he   I'liiiiiii.ati'il,   .aiiil 


iM  li 


to  coiisunic  oiiK    those  things  whuii  wcir  ahsolutely 


nect»ar\    for  health,  streii^'th  .ii 


<!  elTi 


should    imiude,    tlierelnre.   e\  er\  Ihiiij,'   imt    re(|Uiii 


fur   lieilth.    -treii;;!!!   a'"!    ell'icieiuy    of    the   [leo] 


lie   and   not 


Ill.lilileil 


.IS  (leeeiuies  hy  the  t;eiieral  eoiiseiisus  oi  opinion  o 


f  the 


whole  nation. 


•.veil  tlioiii'ii  one 


a   C'liain   stale 


ot 


ns|iie',ioiis   waste. 


-ocial   set   may   live  oil 
even   thouL'h   one   has 


been  .aei'usto 


iiied  to  assoei.itin:^  with  people  who  lorni  their  opin- 


ions 


as  to  an  iniln  ulna 


il's  respeetal)ilit\-  on  the  li. 


IV   wlnc 


h  1 


le  e.iii  iiKiKe  o 


t   his   wealth,  o 


if  the  di 


pi, 

uliuh  he  f;iii  ;id\ertise  his  solNenry.  one  could  not  jiropirly  elami 
th.it  eillier  necessity  or  deeeiuy  required  him  to  .spend  so  nnuh 


r  the  huislii 
1 


ilh 


or  to 


iiisuniu  so  nianv  things. 


•<ir  e\  er\   woi 


11, in  who  is  ph 


ie.ilh    and  nieiit.ilU-  soum 


'^lie  I- 


iire\  ell 


e\  en  one 
the 


serxaiu   is  a  iiixurv  unless 


ictu.ilK'  eiijja^ed  in  other  productive  x^or 


winch  wouli 


t   her    from   doiii;. 
1 


ler  own 


housework.      Meniherslii])   in 


I  .a  chil)  IS  ;i  hi\iir\  to  a  man,  even  thouj;li  .i 


riar- 


ticiil.iv      nciiils   ;m(i   ;is 


coiueiitioiial 


;iates   beloii;. 


to   it.     I'lUt    the   ordinarv 


c'othiiiL;  and    furniture  of  the  ordinary  liousehold 


is  :i  (lec(.'iic\ .  e\  en  thoui;!!  in  cases  ot  dire  neccssi 


tv  th 


lie  d 


Isprllse 


sed  witli.      ()nl\-  ;i  fr.actioti  of  the  human  race,  f. 


Ctir!sti:iii   iiiitions.   c\er   use  chairs,    tor  e\am])le. 


Th 


ev   coil 


hi. 


i6  ^^  ^^,  ^, 

!h- 

■  It. 
1- 

n 
re 


"I't   llinii.      Snnif   k,n,l   ,,,■    „       i  ,     ,"'""'"  .^'■'  '''^"'K  uul 


'  I'at  tlu- .icmand  At  luxmics  ha>  a 

■  lias  Ki'iicrally  lifci,   rLo.i;r 

■  .^^■'"-■'■al  piiMic.     J.  R.  .Ma,. 
i'wc\a-  trivial.  i>  nua.-,.arN 


<'"-'ry  has  i:.„crally  l.r,,   rco,,nuc,l   l.v  .a.„ 


tiimilatin- effect  iiiinn  m- 
'"">-ts  as   well   as 


I'.v  the  oeiieral  puMic.      I    R    M-i,-(  „ll,  i,  i  ,  ■■^■■" 

t-n,  h,.vew.,-     nv,.,    ;;:,".    '■'^^"""''   /^'>->  "'at  a„y  .rat.tua 


---^•".-lertoat,a,„it.      Inln/Cnlnn"'  '^  r''"''"'?' ' 
t'H' \\ni-k(,f  ei\ili/n,..  ,1,,  "1  •  niart  Mill     p,,ii,ts  mu  that 

'b-and,,,entai       ";V';'''',yv•'"^■'''^^''''''■^^•''-''''''- 


I"  pfi'ii.   i>  uiiiteiit  with  M> 
Kit   u,,il<  eftlcieiiiK-  or 


lew  artiele.  of  am.„inp„„„  that  he  uil]  , 
^'""''^"■^^      1'.   l.y   u.,rk,n^    f,„.apan   „f 

-"''"^'''''^^^''''''•'  '■■"■•'-■---  -c,<  1.1  the  .,,et,,.h,eh 


a   Week,   he  ca 


ail   earn 


lie  1 

w 

h: 

w 

St;: 

«{ 


,-11         ,  •  ■'"     ■"-''.'•■    '''^'    '-anie    rea«Mi 

'""'  "';•"  tlH'veaiieari,  en,,„irn 
them    fcir  t\veni\ -fmir  h 


When    i;ien 
"1   '"iir  or  live  lionr>  f    m 


or  ii\  e 


ii'iirs   tliev   insist   on 


-iippnrt 


""•ir^  a  ,hv.      Other,  lin.l  tlia 


workin.i;-  oiilv    four 


t   I'K'.v  eaii  earn  eiion-h   in 


"n-re.ore    retire    fioii,    |,„.„„..    ,,„„„    ,,^,.  '^"    '^'^       "'^T 


irai  an.l   Company. 


TlIK    ri.ACi:    OF    I.L-Xl  KV    IX    \.\Tlu\.\I.    i;c()\()MV 


17 


Slid)  men  and  the  peon  wlio  works  only  a  part  of  cadi  week  1-, 
niiiiii  less  than  is  cnnitncinlv  .^apposed. 

I'.wuicinically  siR'akin.u.  lei.nrc  itself  with  the  opportunitv  for 
sloth,  aniu.^emeiit  or  disMpation  i>  i  luxury  to  some  people.  '  The 
peon  ehooses  hetween  this  form  of  luxury  and  some  other  form 
which  he  could  afford  with  his  wa-es  if  he  were  to  deprive  him- 
self (,f  lei-me  and  work  a  full  week  If  he  prefers  leisure  10 
those  other  liixuno  which  e.nild  he  purchased  with  inoiiev,  he 
will,  of  course,  choose  leisure,  'riie  .s;une  <|uestion  presents 
itseh  aiul  ihe  -anie  choice  is  made  l.y  those  who  decide  to  cut 
<lown  the  hours  of  the  workin-  ,lav  or  the  vears  of  the  workm<r 
life.  ■  ■  " 

As  t.)  which  form  of  luxury  it  is  better  to  dioose  from  the 
stnndiioint  of  national  economy,  there  may  he  some  difference 
of  opinion,  hut  the  economic  arf^uments  arc  overwhdmmolv  i,, 
la^or  of  material  luxuries  rather  than  of  leisure,  thou<,di  in  this, 
as  in  ;ill  other  ec(Mioniic  choices,  it  is  a  (itieslion  of  det;ree.  The 
well  known  principle  of  marginal  utility  aiijilies  here  as  to  other 
economic  choices.  Material  luxuries  which  are  purchasahle  with 
money,  as  they  increase  in  (piantity  tend  to  decline  m  utility  or 
want-satis  fyin<;  power,  simply  because  the  wants  tend  to  become 
satiated.  Let  ns  assume  that  the  lon,i,rer  one  works  the  more 
goods  he  will  be  able  to  purchase  with  his  earnings.  Sooner 
<^r  later  these  purchasable  goods  decline  in  their  jiower  to  satisfy 
his  wants,  simply  because  his  wants  tend  to  be  oversupplicd. 
Ihe  desire  for  more  g(iO(ls  ceases  to  be  a  stmnglv  motivating 
dc-ire.  Sooner  or  later  this  desire  becomes  less  intense  than  the 
desire  for  rest  or  leisure.  The  same  principle  applies  to  the  de- 
sire for  leisure.  After  one  has  rested  for  a  I'ew  hours,  the 
desire  for  another  hour's  rest  becomes  less  intense  than  the  desire 
for  the  first  hour's  re^t  was  before  it  was  enjovcd. 

Mic  mdi\idiial  in  whom  the  desire  for  rest  is  \erv  strong  and 
the  desire  for  piircha'^able  commodities  very  weak  will  iiaturall\ . 
if  lie  has  rmy  surjilus  time,  devote  a  Large  proportion  of  hi>  time 
to  rc-t  r.atber  than  to  earning  the  means  of  jmrchiising  goods. 
On  the  other  hand,  an  energetic  individual  with  a  b  l;1i1v  stren- 


i8 


WAR    THRIFT 


re 


nnu.  natnrc,  ul      ,Mi^I„,  ,„  act:,,„  .ml.arcs  Ii„Ic   f„r  uM  .,r 
'"'^";''   ■""'   "'"'■  ^"    '''^-   --'"H'   imir,   ha,  an   intense-  .Lmic    for 
P">-^-l>asiMv    hixurus    u,Il,    uiih   ..,ual    aTtanUv.    chnnse   t,.    use 
"^   MirphN   ,nn.  ,„  ,,nn,n,i,^   ,1k-  „Kan.  nf   ,n,rchaMn^^  material 
InN.irK.  ratl.er  than  in  r.M  .„■  k..,„-,,      tIktc  „  „.„  „„,,!,  .i.,„l,t 
tliai  a  natiun  nuule  up  of  ,„.,„  ,„  .i,-eniio„.  natures  uho  ,|el,<.ht 
'"  ■'^■t'""   an.l   care   nitrn^ely    for  ,1k-   p,-o.l„cts   of   ituln^trv   will 
I'c   a   .„-on,er  na„o„   ,!,:,„   ,„,,  ,„,,|,,  „,,  ,„    |,^.,,|,,^.   ,,  ,„,^;  ^,,,j^.f 
«K-^"V  H  ,0,-  re,,  an,l  leisure.      The  moral  k-a.ier  or  preacher  of 
r,i;h,eo„s„e.s  ^^  ho..  IniMn.-,,  is  ,o  help  ereale  the  ideals  of  the 
I-I'':';""'  t'"!"vc,  , hen-  ,le,,a.,  that   i>.  ,.,  make  them  deMre 
""■  vi.L^ht   .Inn.ijs,   u,ll  ,Io  well.  therefo,-e,   if  he  1  .l,ors  to  uvtte 
strenuon,  na,ure>  u  „h  a  stn.n^  de.ire    for  acti^i,v   rathe     than 
suth.nl  nature,  wnh  a   .,ron,,  de.re   for  re^t  and"  le,s.-        even 
though  as  a  hy-produet  of  hi>  moral  leaching  h,  should  st,nn,late 
uiNurious  constim[)tion. 

Houever.  the  choice  „  „ot  aho.,ether  1  etween  leisure  on  the 
<.".  hand  and  tnate.aal  luxuries  on  the  other.  It  i,  .pnte  po-„il,le 
t..  .IcveCp  strenuosity.  the  del„h,  in  action,  and  those  uKUives 
M  characeri.e  an  e,K-,-ge,ic  nation  l.v  oth.r  nieans  than  the 
dcMie  lor  luxury.  Kven  thou.^h.  .-,>  jnhn  .^luart  M,ll  poitued 
"•>•'.  -"le  oi  the  hr.t  steps  in  developino  ,h,  ^villin,nes,  on  the 
I'art  o,  a  vacillating  savage  to  engage  in  steadv  work  „,av  he 
the  increase  oi  his  wants.  ,t  does  not  follow  that'  this  i,  the  onlv 
tlnng  which  wall  ai.peal  to  the  civilize.l  man. 

fieiore  going  t'ar  with  our  discussion  of  methods  ,,f  creatine 
strenuoMty.  we  should  consider  further  whether  it  is  worth 
Nvliile  or  not.  We  ,houl,l  he  particularlv  on  our  gu:,rd  a.^ain.t 
at.  uncritical  commendation  of  .trcnuon,  p,-oduction  for  its' own 
''"^'-  "  '^  '"'^-  '""  '■""'■^^'.  'liat  a  commnnitv  which  chooses 
to  take  !,,  luxurv  in  die  form  of  cousumahle  material  goo.l, 
rather  than   ,„   .nch   immaterial    foruN  a,  leisure  and   rest   will 

'''':"  "''"■'■  - '-      ''"^i"'-^^   ^vill   W    m,>re  active,   the  statistics 

'"  "r"'"'  ^^■"  ''^'  ^'^Pamled.  the  census  ,;.ker  and  tax  assessor 
-'"  In-l  n,or,  .an.gihle  evi.lence  of  wealth  in  s„ch  a  con.nntnitv 
'"•'"^  ""■)   ^vould  find  in  ,-,  community  which  preferred  to  take  it's 


Till;   iTAci:  (IF  i.rxi  KV   r\   natiowi,  kojxo.mv  19 

lii.Mirv  ill  ihc  fortn  nf  IciMirc.  Wc  who  are  meml)crs  of  a  stren- 
uous race  t,.  ulio,,,  leisure  does  not  seem  so  very  desirable,  of 
a  race,  also,  wliieii  ,iii,L;lu  he  classed  as  grecdv  'or  skittonous, 
havinj,'  more  desires  f,,r  ma  ial  wealth  than  for  leisure,  lhiui< 
we  have  made  the  wiser  choice,  We  are  therefore  inclined  to 
l-oint  the  thv^vr  of  so.rn  at  the  slothful  races  who  have  chosen 
otherwise.  I  Jut  there  is  such  a  thin^  as  the  p,,t  callin-  the 
kettle  hlack,  '^ 

'Miere  is,   however,  a  more  critical   and  intelligent  argument 
ui    lavor  of  the  choice  which   we  have  made.     This  argument 
,i;oes  hack  as  far  at  least  as  David  1  hime.      It  is  to  the  effect  that 
luxuries  serve  as  a  storehouse  of  labor  which,  in  the  exigencies 
"I  uar  and  other  calamities,  may  be  turned  to  public  service.     Jn 
other  words,  a  community  which  in  time  of  peace  has  expended 
a  large  proportion  of  its  energy  in  the  production  of  hixuries, 
may  m  time  of  great  national  crisis,  stop  producing  luxuries  and 
turn  us  surplus  energy  into  the  work  of  meeting  the  crisis.      In 
time  <.i  war.  for  instance,  the  consumption  of  luxuries  mav  be  cut 
do^^n  and  the  pro,lucti\e  energy  which   had   been   used'  in   the 
production  of  hixuries  m.ay  be  used   in  the  prosecution  of  the 
war,  1,1  the  manufacture  of  munitions  and  war  equipment  and 
so  forth.  ' 

The  nation  which  took  its  luxury  in  the  form  of  leisure  might 
also  be  said  to  have  a  surplus  of  national  energy  to  spare  wli'di 
could  be  used  in  the  prosecution  of  war.  That  is  to  sav,  instead 
ot  spending  a  part  of  its  time  in  idleness,  it  could  u.se  all  that 
surplus  time  in  the  prosecution  of  the  war.  l^ut,  on  the  other 
Hand,  such  a  nati.in  would  probablv  not  have  the  experience  in 
technical  production,  nor  wouM  it  have  the  technical  equipment 
which  could  be  turned  (|uick,y  from  the  production  of  articles 
of  consumption  to  the  production  of  materials  of  war.  .\s  be- 
tween two  nations  with  e(|ual  population  and  equal  n.itural  re- 
sources, the  advantage  would  probably  be  on  the  side  of  the 
one  that  lia.I  Used  its  surplus  energv  and  resources  in  the  pro- 
'liH-tion  of  multitudes  of  goods.  The  nation  that  had  produced 
only  the  necessaries  of  life  and  sjient  its  surplus  time  in  leisure 


2n 


\V Al<    TIFRTFT 


wniiM  iln.I  it  a-  hard  tn  -i\c  n|)  its  Ii'Imiu'  a-  tlic  .tremion,  nr.tioii 
^\""l''  ''"'1  1'  1"  ,i:ivt  iij)  its  material  liiNuric-.  In  ad.liiioii  lo 
that,  the  k'i-iirfly  natidii  wduld  h:i\o  in  learn  nianv  of  the 
arts  oi  teihnieal  iirodiieli.  .n  and  e(|nii)  it-elf  with  tnnls  and 
machinery.  Xot  liavin-  a  wide  and  varie.l  expenenee  in  all 
sort,  of  mechanical  industries,  not  Iiavinj;  tin-  lialnt  of  Mrenuon-, 
mechanical  elTort,  siidi  a  nation  would  proh.iljlv  liiid  more  difti- 
eulty  m  inrm'n^,^  its  snr])lus  energy  effectnelv  into  tlie  war  iii- 
du-tnes  than  the  strenuous  nation,  which  would  onlv  need  to 
;;ive  uji  the  consum|iii.iii  of  luxuries  in  order  to  turn  its  me 
ch;mical  e(|uipment,  as  udl  ;is  its  wide  and  varied  mechanicil 
skill,  into  the  i)roductioii  of  the  necessaries  of  war. 

While  the  ar,<,niments  are  o\crwhelmin<,dv  in  favor  of  -trenn- 
o-)ty  rather  th.an  leisure,  there  is  still  a  clioice  to  he  made  as  to 
the  means  of  stimulating^  stremiosity.  .\  s*-^.nuous  nation  whose 
duel    delight   is   in   activity   may   choosi  pend   its   time   and 

enerL;y  l;i\ishly  in  the  production  of  ca]  .,.,  la  her  than  of  con- 
sumers' l;ooiIs,  of  dtn.ille  sc.urccs  of  satisfaction,  rather  than 
of  tliose  of  ephemeral  sources  of  satisfaction,  which  .are  com- 
monly known  as  luxuries.  A  nation  that  chooses  to  work 
strenuously  at  the  makini,'  of  tools  and  entwines  of  pnuhictioii,  the 
hm'ldins  '^f  roads.  schoi>lliouscs,  puhlic  huildings  of  all  sorts,  at 
the  drainiiiL,'  of  swamps,  tlie  irri,t;ation  of  dry  land  the  clearing 
ot  forests  and  stonv  lands,  can  tise  up  all  its  siu-plus  ener.c;v  in 
these  ways  as  easily  as  it  could  if  it  chose  to  produce  articles  for 
irnnicdi.ite  and  temporary  sratilication.  In  a  time  of  j^reat  na- 
tion.al  crisis,  it  would  have  ;i  va-^t  amount  of  equipment  readv 
to  he  u-ed  in  the  crisis,  in  addition  to  which  it  could  reduce 
the  rate  of  ]iermanent  construction;  that  is,  it  could  stop  ni.aking 
tool^  .and  enj;ines  of  production,  stop  huildintr  ro.ids  and  school- 
houses,  it  could  stop  (Irainin.LT  swamps,  clearing  hroken  land  and 
irrir^fatin-^  dry  land,  and  turn  all  that  eneru:v  into  the  army  and 
navy  .and  the  war  industrie-;.  The  nation  which  had  heen  using 
its  cnerj^v  for  a  century  or  --o  in  these  constructive  wavs  would 
he  in  a  lietter  positinn  to  wage  a  successful  war,  or  meet  any 
other  national  calamity,   than  the  nation   which  had  been   pro- 


THE  ri  Arr  or  i.rxrRv  ix  XATioN.\r.  kcon-omv 


21 


(huiiif,'  hi\iirie>  on  a  vast  scalo  for  iniiiicdiatc  coii>uniption.  In 
the  lir>t  place,  it  would  have  a-^  much  surplus  cners^'v  to  turn 
into  the  war  imlustrics,  iicsides  havinj;  a  vastly  hcttcr  equip- 
ment in  the  way  of  durable  construction  to  l)e<;in  with. 

I'.ven  in  cases  of  local  disaster,  such  as  lire  or  earthipiake, 
as  well  as  in  time  of  war,  recovery  usually  comes  with  amaziiiLr 
rajiidity  to  a  people  with  an  abundance  of  surplus  enerpv.  In 
spite  of  the  fact  that  vast  (juantities  of  wealth  are  destnued,  a 
city  which  has  suffered  disaster  soon  recovers  and  becomes  to 
all  outward  appearance  as  prosperous  as  ever.  I.uxurv  is  sup- 
posed by  some  to  have  an  important  bearing  on  this  question. 
The  real  factor,  however,  is  the  surplti-  of  energ^v  which  the 
cnmmunity  has  which  may  l)e  turned  to  the  task  of  rebuildin,;; 
what  was  destroyed.  Whether  that  surplus  existed  in  the  form 
of  leisure,  in  the  production  of  luxuries,  or  in  tlie  construction 
of  diiraljle  etpiipment,  it  is,  after  the  disaster,  available  for  re- 
building, which  is  onl     another  form  of  durable  construction. 

We  grant  without  further  argument  the  validity  of  the  con- 
tention that  in  normal  times  luxury  is  a  storehouse  of  labor, 
that  through  the  production  of  luxuries  labor  "  keeps  its  hand 
in,"  as  it  were,  that  men  iiave  wide  and  varied  experience  in  all 
kinds  of  mechanical  production,  and  that  .all  this  energv  am! 
skill  may  be  redirected  toward  the  war  and  the  war  industries. 
This  would  furnish,  however,  the  poorest  kind  of  an  argument 
in  favor  of  a  continuation  of  luxurious  consumption  in  time 
of  war.  In  fact,  the  validity  of  this  argument  depends  abso- 
lutely pon  the  willingness  of  the  people  to  cut  off  juxurv  in 
war  time.  If  they  are  unwilling  to  do  this,  if  they  insist  on 
living  as  luxuriously  in  time  of  war  as  in  time  of  peace,  the 
validity  of  this  arcrument  for  luxury  i-,  absolutelv  destroved 
If  thev  demand  as  luany  luxuries  in  war  time  as  in  peace  time, 
there  is  no  energy  that  can  be  released  for  war  pur[)oses.  If 
luxury  is  a  storehouse  of  labor  it  would  be,  in  this  case,  a  store- 
house which  could  never  be  drawn  upon  in  time  of  need:  it 
would  be  about  as  useful  as  money  locked  up  where  it  could 
not  be  got  at. 


22  \V  \R    TIlRirT 

'J'hc  essential  tiiinc;  is  tiiat  tlieie  sliall  lie  a  fund  of  ^uqilus 
Ciieri,'\  whitli  may  be  (ie\(iteil  tn  extraci)  ilniai  v  purp.  .>c-  in  e\- 
tr.ii)nJinar\-  nine-.  WliitliiT  tliis  -urpln-  eneri;\  e\i>t-  in  tlie 
fdriii  of  lei-ure.  of  man  power  devoleii  to  liie  pioihielion  of 
]n\nrie>.  or  of  man-powe;  devoteil  to  the  prodiietiwii  of  tools, 
en-ines,  roa<l-,  i)nd;;es,  architectural  ninnuments  and  other 
.siirrce-  of  duralile  -ati.-facti.  m  i,  a  minor  (|Uesiion,  though  one 
of  coti-iileralile  importance  in  it-elf. 

A  .i^reat  ]irevcntive  nf  the  accumulation  of  a  fund  u\  sur- 
plus human  energy  is  the  tendency  toward  the  multiiilicaii-n 
of  mimliers.  If  there  are  too  many  jieople  trvin;,'  to  wre-t  a 
li\in--  trom  a  lim-ted  ^eo.tjraphieal  area,  it  may  reipiire  rdl  their 
eneri,'y  to  procure  the  means  of  .sul;si-tence.  so  that  thev  will 
lia\e  none  left  for  leisure,  f(.r  luxury  oi-  for  permanent  con- 
struction. It  is  a  well  known  fact,  for  e\ami)le.  that  vesetatiou 
tends  to  hecome  so  den-e  as  to  u-e  Uji  m  mere  survival  and 
mulliiilication  all  the  fertility,  moisture,  light  ;ind  other  essen- 
tials of  growth  which  the  limited  space  altords.'  If.  f,,r  anv 
accidental  reasons,  the  vegetation  in  a  certain  spi.t  should  not 
be  so  dense  as  to  use  up  all  its  resources,  its  p.iwer  of  mullipli- 
cation  IS  so  great  and  the  tendency  toward  multipliaition  so 
poueriul  as  to  speedily  increase  the  deii.-ity  tu  the  point  (jf  equi- 
liliriinn. 

r.y  the  point  of  equilibrium  is  meant  a  condition  in  wlr  h  all 
the  ener.L^y  of  the  i)l;mt  is  re<|uired  for  the  mere  iimccss  of  (<eep- 
ing  alive  and  repvMducing  itself.  \'egeta!)les  seem  to  ha\e  no 
means  of  arre-tnig  this  ])rocess  or  of  accumulating  a  fund  or 
store  of  surplus  energy.  .Xature  seems  everywhere  to  preserve 
a  sort  of  balance,  or  ei|inlibriu.ni,  be'ueen  the  demands  of  living 
things  and  the  supply  .if  the  essentials  ,,i  life,  ddn's  applies  not 
simply  to  vegetable  life.  Init  to  .animal  life  and  to  human  life,  at 
least  in  its  lower  f.irms,  !„  ,I,e  absence  of  disturbing  causes, 
human  jiopulation  lends  to  become  so  dense  as  to  rei|uire  all  the  • 
energy  of  the  peo])le  to  procure  sub-.tence  enough  to  sustain  that 
energy.     .\    cnuimunity    which   possesses    more    energy    than    is 

'  Sec  T.   X.  Cirxer,  F.s.kjxs  in  .S",u-m/  JuslUi-,  pp.  1,52   l.?j. 


TIIF.    riACK    OF    I.rxrRV    IN-    N-ATION-AL    Ij 

rc'iiiircd  U>  kcfp  itself  aViw  and  to  rcphicc  (In-  ei 
the  wnrl, 


\().MV 


23 


icr.Ljv   used  up  111 


1)1  Kaiiiiiij,'  suliMsteinc,  may  lie  >ai(l  to  i)o>-^c.- 


tlUTi'V. 


Xat 


lire, 


>iich 


ciKT^v   III   \ariciiis 


inini!)C'i 


ainl 


■•fCc ) 


11(1  tl 


surplus 
.''Urplus 
c  imiitiplication  of 
Uoii^di  ;,'lnlt(jiious  coiisiiinptioii.      In  a  few 


io\ve\er.   teii(U  to  ilissipale 
rli   the 


'ii'si,   tiiroii] 


lit 


cases,  lio\\e\er,  and  111  the 


hist 


orv  o 


.'w.  special  iiranelie^  of  the  lutniy 
imethin''  more  than  tlii' 


acnievni''' 


f  tliis  planet  they  are  ver\ 
speeies 
That  ; 


ia\c 


iieceeded   in 


:ichievement  ma\   1)C 


called  a  Muriii',-  of  surplus  human  ener.c^y.      Such  a  result  is 


silile  onl\-  wli 


ere  nature  s  [)rocess  of 


and  human   eiier<;y  lias  h 
own  i)liy>ical  maintenance. 


tlis^ipation 
.th 


has  1 


pos- 
jeen  a r re > ted 


>een   used    tor  oilier  purj)Oses   than   its 


Tl 


le  et"feeti\e  aijeiuv  l.y  means  of  which  this  store  of 


cner<;v  is  elfected  is  the  e 
itnl  d 


surplus 
xpansion  of  human  desires  hexond  the 


two  elemental  desires  of  luuifrer  and  sex. 


the  desire  for  leisure  until  it 


le  streiigtheniii,^  of 


will  take  preced 


ence  over  the  de 


sire   lor 


aial  gratitication  niav  lead  a  com 


po])ulation  within  -uch  limit-,  as  will  enahl 


witl 


.su-tenance 


sur])lus  ot  enerj^'v  to  he  devoteil  to  k 


nniinty  to  kec;)  its 
e  Its  people  to  jirocure 


1  a  part  ot  its  energy.      In  that  case  it  will  have  a 

sure.     In  other  c;  >es.  the 

■cNual 


desire    for  material   lu.xuries   i 


iir; 


ly   take   i)recedence   o\er 


desire  and  lead  the  people,   throu,i,di   what  is  k 
standard  of  liviii",   to  defer 


noun   as  a   luy-li 


marriage  ,'ind  control   the  average 


k\/x  of  the  family  and  thus  keep  the  ,>oi)ul;ition  wilhm  -iich 
limits  as  will  enable  them  to  procure  i)li/o,-ai  sustenance  with 
a  iiart  of  their  energy  In  this  case,  the  surplus  energv  can  he 
devoted  to  the  production  of  material  hi 


-Mines. 


Hut  thrift 
lesire  for  ei 


IS  (|uite  as  c 


ff  ect 


i\c  an   agencv  ot   control   a 


the 


thcr  1 


eisure  or  material  luxuries 


The  effect 


ue  de- 


sire   tor 


-■umulation  mav   liecomc   strong  enough   to   hold   the 
li-sipating  tendencies  in  check,  to  reduce  the  size  of  families  and 


raise  tlie  age  ot   marrint 
\\ho  insist  on  saving 
the   .■iccumulations   of 


.\ 


encrg\-    ;is   a   Conimunitv    that 


uxunes 


community   made  up  ui  jieople 

omcthing  cacli  generation  and  adding  to 

.•ajiital   will   have   as   large   a    surplus   ui 

insists    upon    leisure   or   material 

e  insurance,  for  a  savings 


In  short,  the  desire  for  lif 


-4 


W    \K     rilKlIT 


iK'IMi-ii,  lor  ;m  iinc^tinciit  in  prniluLtl^o  llu^iIK■s^,  for  iiuToa-i- 
in  the  ^Inck  Ml  i.M.l-,  and  c(|ui|iincnt,  >'nti'rs  into  tlio  ^tanil.inl 
(It  Ininj;  (it  a  pi('L;ri'-M\c'  |>f((|)if  as  truly  a>  duc^  tlic  (k'sirc  tHr 
sirl'iui  -ttak.  -ilk  (lic--(-,  or  aiilnini.ljik'-.  It  lia>  i)roiis(.'lv  iIr' 
same  cltt'ct  (III  tlic  ,iu(.-  (it  niarna<;(.',  (Hi  tlic  -i/c  ni  laniilic-.  ni 
arr(.--tiii,i,'  tlic  (li-.-i|iatin,^  tciidi'iu-a's  ni  tin.'  udrld  of  jihyMcal 
nature  a-  d'  tlic  le--  inn-triKtivc  desires  lor  lei-iirc  and  ln\iii>. 
In  addition,  it  lia-  the  elVect  ol  adding'  to  the  in. In-trial  e<nii])- 
iiient  oi'  the  (•oinnimnty  },aMieratioii  al'ter  .i^encratioii.  li  i-  no 
aecident,  therefore,  that  the  nation-  wliieli  take  their  -nrphi-  in 
the  lorni  ol  lre>|iicnt  holidays,  of  j^'r.aeefnl  e(iii-uin|ition,  .and 
flej,'ant  lei-ine,  ha\e  loii.i,'  since  fallen  hehnid  in  the  |iroL,qe--  of 
civih/atioii.  while  those  nation-  which  have  preserved  ;i  kind  of 
enioiional  iiitere-l  in  the  austere  and  iirodiictive  life,  whose  ideals 
of  hie  lia\e  C(  ,tered  in  the  future  rather  than  in  tile  pre.-ent,  have 
heeoiiie  the  ,i;rcat  nations  in  every  modern  sense. 


CHAPTER  III 

The  Relation  of  Thrift  to  War  Economy 


M 


ere  -i/c  is  .if  no  .uKaiit.'i'a'  t 


Id  :i 


fi-ht 


luaii  ,111(1  imiscular  man  niav  ciimIv   win 


larL;rly  df    fat. 

fat   man  nf  t\\  nc  !ii~ 

flights  nr  siiiiplifs  tilt.'  (iijlitiii,:;  jiart-  and  half  tlic  fat 


cr   i!    It   ln'  mailc  wp 


-l/l'    w 


lien  all  tlic  1 


can  man 


llcKlV     tlthlT 


lIlU'S     IK'ltlH'f. 


Tl 


crc  >:/o  i>  oi  Mo  a.Kantau'c  if  it  con>ist-.  nf  pcnplc  \\lii)  iifitlicr 

iipplvint;-  tlu'iii  witli  what 


M 


ti^Iit  niir  Work  to  lu'lp  llu-  fij^htcr- 
tlu'v  tict'd.      Tlu'v  wild  {1( 
in   tlic  hculy  [xilitic.      A   v 


R-    sanii'   principle   applies    tn    nations    at    war. 


h 


1  neither  o 


f  tl 


lesc  tliiiiLTs  are  mere  fat 


won,  not  liv  the  si 


(le  wliien  lias 


tl 


le  most 


peop 


hut 


l>v   the   s]ii^.   wliRii    niaiia<;es   ti 


\een 


,ari,a'st  niiniher  ot  well  trained  men  on  the 


line  and  to 


them  hesi  supplied  with  the  mater 


lal 


it    wa 


.1  th 


ilat 
the  t 


ion  counts  toward  the  wini 


either  i»i  the  h;;htinj,'  lorces  or  .siijiportin^'  the  men  who  are  there 


r.      (Inly  that  part 

iini;  of  a  war  which  is 

tlr 


keepinj,'  them  supplied.     Others  are  negligiMc  so  f 


ar  as  win- 


ning' a  war  are  concerned,  whatever  other 
or  think  that  tliev  have. 


tl 


uses  tliev  nia\- 


hav( 


or  a 


niod( 


rn  nation  to  put  its  full  strength  into  the  fi.i^htin^ 


forces  re(|mrcs  a  vast  production  of  war  material 
ranks  and  to  [irodiR-e  war  supplies  on  a 


litiiit 


reipiires  a  vast  outlav  of 


To  fill  the 
n  adequate  scale 
man-power.     Where  to  sjet  this  maii- 
'  'em  of   war  economv. 


jiower  IS  theretore      le   fundamental  prohl 
'I'lie   nation   which   solves   it   most   effectivelv   1 
ei|ual,  the  lie.-t 
Tl 


las,   other   tlimus 


ci!..tice  ot  wmniiiij 


lere  are  three  sources  front  which  this  fund  of  m; 

>1 


ose   wiio  were   idle  in  tunc  ol 


niav 


lie  drawn.     I''irst.  tli( 

he  put   to  work.      Second,   those   who   were   at    work 


m-power 


]ieace 


irk  harder  hy   speed 


m;,'  u(),   l>\-  workiiR 


lontxer   tiours.  or  hv 


J(> 


V'.    \l<     1  IIKII    1 


lakiiii;    tVuur  l^.|„Ia^-.       I  Innl.   ihr;    u  h, ,   u  .-rc^  d.mij;   tninccos- 
sai\  tliiii.L;.  Mi,i\   M.i|,  ,111.1  lie-Ill  .1.1,11-  iui-i-..ar\   tiiiii.u'-. 

All  iliKT  M.un-,.,  , ,111.1  i„,  ,i,-,iu,,  |,|„„|  III  ,,|,,|^.,.  ,,,  ^,,,,  ,1^^.  |^^,^j 
rcMihv  I  huso  uh..  uric  t.ikiii-  ili.'ir  pour  tunc  |.r..>i)rntv  in 
tlir  I. .1111  ..I  k'lMiiv  iiiiNt  .acnl'uv  Ihnr  IriMiiv.  iIl.m-  wli,.  urrr 
taking;  It  in  the  i,.riii  ,,i  .h,,rt  li.,iir-.  sLuk  u.,ik.  an.)  tir,|iu-iit 
liolula.\>  HUM  sK-nlRv  ilior  a(l^allt,l^;c^.  an. I  ili..-c  uIl.  unv 
takiii-  It  11  iIr.  iMnn  ..f  ni.n-r>-intial  artRks  ,,|  c..ii-uiiipti,.ii 
nnist  sacrifice  iIriii  an.l  nit  tlinr  o,iimiiii|,!i,iii  il,.un  t..  thai 
niinumim  which  is  mvo^ary  for  health,  ^trcn.-th  and  cmocntv 
Otherwise  the  nati.m  will  n..t  he  ahlc  t..  cscrt  il-  full  Mvcn-th 
..rt..  nia->  ii~  Mill  man-]..  ,\\  cr  iiim.i,  thr  war  an.l  the  uar-w  mniii'-; 
in.lu>lrie>.  it  the  >i(les  are  at  all  evenlv  niatchnl,  the  Mile  ulneh 
is  willint,.-  an.l  al.le  V<  make  tlie^'  three  -aeritiee>  an.l  t.)  iitili/e 
til  the  full  all  the-e  -..lire.'.  ..f  nian-j).  .\\er  will  win,  an.l  the  -irle 
whieh  i>  nnwillin.i,^  t..  make  tlie.c  vacrillee>  nui-t  expeit  t-.  -v.Uvr 
Immiliaiii.n  nivl  .lefeat. 

'Ihal  Ih.^-e  uh..  were  i.lle  -IlhiM  he  j.ut  t.)  u'.irk  is  m,  rliar 
a-  !..  iiee.l  n.i  (liM'iission.  X.)  ..ir.  cire^.  a^  a  matter  ..f  t'aet.  t.. 
(leleii.l  the  leisure  ela-s.  AiivIlmIv  ean  ;>ee  that  an  i.lle  man  is 
a  man  .-..in,-  t.i  ua-te.  Ft  ..ii-ht  t.i  l.e  e.|iially  clear  that  a  man 
\vh..  i>  I.lle  a  part  ..f  every  day.  or  certain  davs  ..t  every  uiek 
IS  aK..  in  j.art  g..iii,-  t..  ua-te.  rnf.M-tunatelv,  h..uever.  this 
pr.  .ji.  .-iti..n  strikes  m.  el..-e  h..me  t..>  many  intlnential  pei.plc  as 
t.)  i.r..diKe  x.mc  ilisensH..n  and  even  t.i  create  re-entment  m 
certain  .|narters.  The  tendency  anmnfj  such  jiople.  e-peci,illv 
in  deiiDcratic  ciititries,  is  even  t<i  deniaiid  sli.irter  h.uirs  ;m.l 
in. .re  h..Ii.la\s  in  war  time.  In  ant.ieratic  countries  tliev  can 
l)e  deait  u  iih  hy  f.irce.  Nothing  hut  an  inten-e  ])atriotisni  which 
will  lead  tliem  v.>hintari]y  to  s.acrilice  ea'-c  and  anui-eiiieiit  tor 
the  national  ,i;."id  can  overcome  tins  tendencv  in  a  democratic 
Country, 

1  he  ,i;reatest  dil'ticulty,  hmvevcr,  is  met  with  in  trvin.s^  to  con- 
vince people  that  they  ought  to  sacrifice  material  luxuries  and 
--t.ip  huyin.g  non-essentials.  People  do  ii.n  see  so  readilv  that 
a  man  who  !.•,  hired  to  produce  a  iioii-cssential  is  goin<'  to  waste 


TIM      KM    MlilN     OI'    TIlHll   I      In    \\\K     l((IN(IMY 


fnini  the  st.milpniiit  ni'  war  ccuiiomy  m- 


tniK 


a^ 


tip  'll^'ll   111-    WlTi,' 


idle.       ' 
ImI-    till 


litliciiltv  ciiiiN 


oMTCDiiu',   lidWcM-r,   were   it    iim 


tem.itu-  cttnrts  lit  tlii)>c  Willi  are  iirnlitmi;   truiii  tln' 


iiiiiliulii  111    lit    iiDli-e^srlltiaK    tii    he 


;l..ml 


tl 


le   is>ue   ami    millitv 


tlir  elTnrt■^  nl'  the  natiiiii  tu  iiiii!)ili/e  it>  iiiaii-[Miwer  iii  tlie  es>eii- 


tial  iiiiln>lri( 


ith  ijiulaiiil  and  tlie  I'tuteil  States  the 


an 


iu--mc-^"; 


as  iKiial  "  was  raised  at  tlic  he,L;iiitiiii^  ui  tlie  war,  ami  was  kept 


ill)  as   loti 


a  ])atu'iit   inihlir   wniih 


1  t. 


lerate   it. 


It   was  1)1 


ceive 


!l    to    1)1 


])al|)al) 


e  ai)siirilit\  as  somi  a-^  pi 


lie  realized  what 


was  imnlvcd.  1  hey  were  sunn  cniniiiced  that  tlie  f^reat  een- 
tininic  prnlileiii  nf  the  war  was  iint  that  nt  keeping;  the  iiatiniial 
eiierj,'y  in  the  old  channels,  hut  nf  redirectin;,'  it  into  the  new 
ehannels      ( Jnestinns  nf  nintiev.   tniaiue.  imhistrv,  thrift,   taxe-, 


war  loans,  .ship 


tl 


d,   lal 


inr  —  ill    I, lit,   i'\ery   special   questinii 


was  really  a  p 


irt  nf  that  trveat  iiiie-tinn  and  imist  he  solved  with 


special  reference  tn  it.      Thev  saw  that  we  must  manatee  in  some 


wav  to  redirect  the  whole  eneru;v  ot  the  nation  and  hruiLr  it  to 


lear  upon  a 


puriiosc  ot   winiun; 


new  set  of  ohjects  in  order  to  promote  the  great 


jioses  of  peace, 
asked    reiiardiiijr 


the  w;ir,  rather  than  the  multifarious  pur- 
hev  hegan  to  see  that  the  first  (piestion  to  he 


anv   i)roi)ose(l 


I   puh 


I' 


ili 


however  detaile 


1 


It   iiu; 


ht    1 


le,   was 


national  energy 


Will  it 


it  affect   the   redistrihution  of   the 
will  it  not  enahle  us  to  mass  more 


inaii-power 


at  til 


e  points  where  it  is  needed  in  order  to  win  tli 


Hut  the  work  of  redirecting  our  n.iti'iiial  energy  met  with 
ni.iiiy  ohstacles,  not  the  least  of  which  was  due  to  the  change 
of  hahit  or  of  occiip.ition  which  it  required  of  large  iiumhers 
of  ])eo|)lc.  They  who  had  heon  directing  their  own  energy  and 
that   of  other  people  toward  the  ohjects  of  peace,    found   that 


tlu-y  nuts 

their  work.      It  was  not  alwavs  easv  to  see  the  connect 


t  in  mn.>t  cases  rearrange  their  plans,  their  hahits  and 

ion  be- 


th 


e  winning  ot 


tweeii  a  change  of  hahit  which  was  reiiuired 
the  war.     Therefore,  some  people  were  imi)atient  of  the  neces- 
sary  disci])Iine   and   restraint.     Not  only   is  a  change  of   hahit 


W    \U     I  II  KMT 


n-M'nrcl.  I,i,t  ..  -.■,kt.-iI  .|i-.n  raii-.nu-nt  ,,|  l,„„„,..s  |,|,,ns  'I  li,.y 
ulin  vMTc  ,|,,in;;  m  ti.m-  ..|  [kmcc  ilnn-^  uliuli  .ire  ,,|,iallv  ikt.','- 
^ar>  ,n  time  ,.t  u.,r,  sntYm',1  i..,  1,,-.  ai.l  ,n  ..„,„■  o.n.iMai.uis 
cases  l.a\r  '^u-mU  ,,r,,l,u.,l  11,,.^  .,!„,  |,a,l  1,,.,,,  ,i,„n^.  ni  iinu- 
"t  IHMo-  Ihin^'s  uhul,  urrr  n,-I  lurc-.a,  v  Inr  tlir  ^^unuu■^  of 
'lu'  'A  ir  unc  ihivaU'iiol  uul,  a  1,,,.  nf  I,„sm,...  an.l  ,,i  „K-u,nc. 
Il'i-  .Innlitlc,.  MTiiinl  iiiilair-tliat  v,„nc  >li,,ul.l  i„,,r„  uinlc 
-iIkin  .|,nul,l  In,,,  a,  llu.  i.Milt  .,1  ,lu.  uar.  I'.ut  la.nu.^s  in 
•''1  >"nanu'.l  ai„l  a  Mice  an.l  t.|,iital.lc  a.liiislmnu  ni  In.nl,  n, 
•""1  ■■'^^.'hN  „,  uar  tiuK.  ha,  ii.v.r  Iktu  pn.sMhlc.  oiIrt  |,,r  the 
M'MuTMu  ilu'  ranks,, r  r  t  ilic  .  i\  ihan- at  h,.nn-. 

A  rcnain  rcHit  inhu-.  ua^  .hnun  h>  in,hM,lnal,  l,m'  iipI 
thnc  ,.i  all  rlasM.  ul„.  wnv  iin!a\,,raM  atUriol.  .Mamirar- 
turoi,  ,„■  ,|,.aK.rs  ,„  nn„H-,s,,uiaN  h.,  aiiR.  an,\v  in  ,  .hstrurlin- 
R'snlatHMis  an.l  u,  ,,,,,„,„„;r  ^.o-nrnmcs  uhuh  ucr.  ahM,hitdv 
necc-..ary.  A.lv.r.i,,,,,-  sh.vts.  r-„nn,n„lv  calh-.l  nov.pap.r.  p.r- 
siMcntly  lns,.,,,l  ,hr  i.Ica  that  tluTc  atv  „„  nnn-csscntial  indns- 
irK-,  and  tluy  ilu-,v,-,.,v  a.Kucatnl  a  /,„.„,-  /„■„-,■  ,„,l,rv  u„l, 
•■'-I'c-n  to  ihnr  ,.u„  kin.j  ,,f  pr„l,t,.c■r■n^^  TluTe  ucc '.tMkrs 
and  lliR.ats  ,„  .,nk..s  ,,n  the  part  ,.l-  variuus  lal,.,r  ..r-nn/ati.  .n, 
c'.M.    a,;;a,n-t    th.    h.ttcT    uiMJon,    and    advia-   ni    thv.r   national 

\\c-  ran  imt,  tlK-rclnrc.  sinoic  unt  anv  particular  ^nu,p  or 
<Ia^.  n,  ,„„,„.  ,•„,  rc.pn,ach.  All  das,.,  acre  ..inallv  ^,„l,v 
^""1   ''-inallv   tn.ri„,r,u„s;  ,hat    i..   tluT.   wctv   indivtdnaN    in   al 


;l..,-r,   uh,,   uc-rr   uillni^r  „,  miIUt  nunnveinViuv  and   har.Mnp 

;n  -rdrr  m  u  n,  ,1,..  uar  and  there  were  other,  u  ho  uere  t,o, 

'iHT,.   „   no;   the   sh'^hte^t   do„l,t   that   a   strike   ,..      „v   es^entrd' 


"I'lnstrv  was  :,  hindrance  to  the  ijreat  work  of  nuissin.r  ,„,n- 
I"'"^''-  at   the  potius  where  it  wa<  nee-led.      Xeither  is  there  the 

sl.Klncst  -louht  that  the  refnsal  t,.  econ..ni/e  ,n   to r  to  save 

ninttey  ,n  or.ler  f.  l,„v  liheriv  honds  was  e,|uallv  disloval  and 
e-inallv  calculated  to  ,,l,struct  the  government  in  its  ellorts  to 
\\  111  the  war. 

The   expnnents   of   the    '•  l.,isi„ess  as   usual-    t-allacv    were   in 
the  earlier  days  of  the  war  in  the  hahit  of  askint;  pereniptonlv 


III!      HI   l.\T|()\     (II       1  IIKII    I       111     \S   \H 


2() 


f.  •  a  li^l 


>\   till'  ni.ii-i-~sciiiial   III! 


llNtt 


rii's  wlii'ticvcr  aiiv  oiu-  mi" 


.'f^icil  .1  iMiuraitMii  1,1   n.iii  is-cnii.il  Im^iiu'-,-,  in  nidiT  td  iiiaUc 


|)().sm1)1c    tl 


■\])aii-iiiii    111     till' 


.•iitial 


itiilu>trit'- 


Soiiicewn  Willi  ^11  I  ir  ;i^  to  say  (|(i;;m.itii'all\   that  tlurt' 


non-esMMiial  iii'liistiic 


\\1 


lai    llu\    II 


.  mu-l 


\    iiicaiit    was 


tliat 


il 


iiTc  were  m.  iiiiik'siralile  iiKlilstnc- 


iiuiit  a-  lli.it  iiiiilil  lianlls 
iiiilii-try  Is  lint  iK'i  fssariU   ll 


•ifiiili 


tni)n;;li  cv  i-n   siu'li  a  state- 
1  l(iwt'\  IT,   a   (|i'siralil(. 


'Ih 


ir  -aiiic  as  an  I'ssfiiti.il  iiuliisti 
]iriililciii  111'  ci.niiiiiy  I'nr  tlic  iialinii  is  wy\  miuli  ili 


<•  -a!  lie 


a>  f.ir  tin-  iii.liM.Jiial.      It  i.  the  ]ir(i|;lcin  nl   tlii.osiiii,'  tlic  iimre 


impiirtani  tn  ilu-  i-Niliisinii  ,,i'  iI-.  ], 


iiiilinrtant  tliiiK 


lint  tliat 


III.'  k-s^  iinpnrtaiit  tliiiii,'s  aro  in  iIk'HIscKcs  iimli'siralik-.  Imt  iirti'Is 
that  tlii'v  arc-  less  I'ssfntial  iliaii  lurlaiii  dtlicr  lliiims 


•t'W     III- 


(li\  iiliials  liavc  c\cr 


•11  in  the  I'nrtnnate  imsitioii  nf  heinj^  ahle 


tn  all. nil  everythiiii,'   which   tliev   iiii^ht   hk 


ol  si 


lecial  cri-'is, 


tlie  w  ise  inihvi(hial  will  deprive  1 


to  lia\e.      in   time 


unisell  oi  maiiv 


liiiiu:s  wii 


ich   are   in   thenise!\xN   desiral 


lie  merely   because   there 


are  oilier  aii.l  more  liesirahle  thin;^-- 
fail  I.I  (1.1  tlii^  is  t.j  fail  to  meet  the 
is  np.in  the  nation. 


wliieli  lie  iiiiist  have. 


T 


crisis. 


lie  same  iieeessitv 


a\    that,  in  tlie  present  crisis,  there  are  no  non-esscn 


in. Ill-tries   is   almost   like   savinij   th.it   all    indii-tri' 


-en  I: 


\vh 


that  it  is  jiist 


'      an   ahsurdity.      That    would    h. 
imixirtaiit  that  ue  should  h; 


tial 


are  cjually 
like  sayini^ 
f( 


ive  jewelry  lor  jiri 


\.ite   enjoyiiieiit    as   ammunition    for   n.aii.iiial    defense,    that    we 
should  have  aiitomohilcs  for  pleasure  ridiiit,'  as  amhulanccs,  army 


true 

tho~ 


leroplanes  .and    farm   tractors. 


tliat 


we   shouk 


d  hi 


ive 


.-irticl 


(it  weaiiii'^'  apparel 


1  j^ratity  pride  and  \anity 


as  overcoats  and  hlankets  f. .r 


(lUr  sokliers. 


( )n  the  .itlier  li.ind,  t. 


1  s;iy  liiat  ..lie  t,M'oni)  of  jirodiicts  is  more 


important   in   this  crisis  tli.iii   .m.aher.  does  not  necessarilv  aiul 


in  e\er\  casi^  mean  tiiat  the 


sh 


loiild  he  produi-ei 


1  to  til 


IV   simi)l\- 


omplete  and   alisohite  exchisioti   of   the   otlic 

mean  tliat  the  prodiiclioii  i.f  the  one  sh,  mid  \„ 

and  that  d  the  other  i^reatly  contracted       When  the  induid 

f.imily  liiids  itself  f.icint,'  a  crisis,  like  severe  sickness,  it  is  not 


it   ni. 


,freatly  expande. 


iial 


30 


WAR    TllRIIT 


lU'fc's-iarv  that  it  >t 


('])   linyill;;-    tiMM 


nio(lRiiH'> 


and  I 


)a\-  (li  'Ctiir 


in- 


to hiiv  k' 


It 
.l-tli 


11(1  clutliiii^  in  order  t^  Iiiu' 
iiia\  lie  iic'cessarv,  liowfvcr, 


(.•»  c'\l>i'nM\r  lond  and  (.iMtliinL,'  in  order  to  have  nionev 


U>  s[)end  for  thini 


>  whicli.  in  the  >  ii>i>,  are  more  important  thai 


some  111  the  expensive  itenis 
fornierl\-  hoii'dit. 


Ol      1( 


ouu  and  cicjtlniiL;'  winch  were 


It  it 

-ential 


were  i)o>-ihIe  to  classify  all  onr  industries  as  ahsoluteh 


I  ir  ali> 


Intel V  non-e>sential 


problem  wonld  lie  very  simple.     The  government 


uitli  no  middle  .L,Tonp.  the 


Close  a 
material 


11  tl 


le  non-essential  industries,  or  refi 


tl 


d  li_\-  edict 
lem    fuel,   raw 


ireiLilit  car; 


etc. 


m   order   that    the^e   tliinij^   miLdu 


reserved    tor  the  cs>ential   industn 


government    has 


already  stopped   the  ili>tillation   of  pntaMe  alcnh,,],   and   mi-lu 


well 


farti 


ler  m  ti,e  same  direction.      I'.ut  the  nuiiil 


icr  (d    in- 


dustries who.-,e  products   are  alisoluiel 


\    U'-eless  iir   non-c-scntial 


verv  limited.      Most  of 


Intelv  es-enti.il   he] 


!lio>e  w 
Ik 


hich  are 


oni,'  m  a  muldle  ,L;r.  .up. 


desirable  or  essential  in  limited  i|nantities,  wiiereas  1, 


not  classed  as  ahso 
dieir  products  art 


titles  are  non-essential. 


u'L^er  (luan- 


I£ 


\cii  es-entials  are  frcmicntlv 


tie- 


e  oa 


iiou,<j;ht  111  non-essential  quanti- 


111  nil 'derate  quantuies,  is  an  essential 


Init 


dual 


ma\    consume   it   lu.xurioti 


islv,    ], 


eepmg   too   many   rooms 


warm,  or  Kecpini;  them  too  warm.     Sui^ar,  wheat  llour 


and  a 


number   (d'   other   thinj;s    which    would    scarcelv    b 


ill 


)c  called   non- 


.'luials 


mav 


ilv   1 


easily   he   consumed    in    nnu-essential   i|uaiitilies. 


But  the  list  extends   far  bev,.nd  tl 


lese    lew  commodities 


are    \\(ieUill\-    scarce. 


ill 


\  en    millincrv   co 


uld 


aljsolutely   iidii-essential:   we  need   s,,uie   kind   id'   1 
we  mav  easiK-  Iniv  too  much. 


-•ly   be   called 
leadL'ear,   but 


.■\ 


.■rnment  decree  is  a  sinrularlv  cliimsv 


method  id'  dealin;^  with  an  industrv  .;f  tli 


and  uiiscieiitihc 


d.. 


;roup 


I  f  the 


millinery   industry   were   peremptorily   and   arbitrarily   closed    it 
.•ould  lint  only  stop  the  jiroductioii  of  unnecessary  linery.  but 

It  is  the  consumer  rather  than 
the  producer  who  must  be  reached.  The  best,  the  most  effective 
and  the  most  scientific  method  is  simply  to  increase  our  income 


also  of  the  iiecessar\-  lieadLTcar 


Till-.    Rl  I  A'l  Iii.\    Ol-    TIIRH-T    to    W  \K    IXOMiMY 


31 


ta\t'<    uiitil    \\c   arc    torccd    to    cut    our    c(in>uni])tion    down    to 
es^cntial^. 

The  next  (juestion,   ami   in   some   respects   the  more   difticult 
(|Uestion.  is  what  to  do  with  the  labor  which  i>  now  eniploxed 


th 


e  noil 


•essential  iiidustrie:- 


in 
'he  cli'sin"  down  of  a  non-es-cntia! 


iiidustr).  t)r  the  reduction  of  the  scale  of  production  to  the  e^sel 
tial  limits  will  uniloubtedly  throw  some  men  out  of  emplo\ 
iiieiit. 
nuthmi; 


If  it  w(juK1  not  sa\e  man-power, 


•).il  or  raw  materia 


Is, 


d  lie  j^ained  hy  it 


In   the   tir^t 


place, 


the  neces-ary  expan>ion   ot    tlie 


e>--cntial    indr,-~tries   re(|Uires   a   j;:i'at   iiicrca.^e   m    the   supply   ot 


alior. 


Iii.i  alone  w  1 


II  tal 


e  care  of  all  tho>e  \\  iio  are  fitted  for 
the  ])articular  kinds  of  work  which  arc  needed.     Our   farmers 
its'  end  to  know  where  they  are  fjoinj^  to  f^et  hel]). 


U  the 


The   >hipvard-.  are  calling;    for  men   hy   the  ten-   of  thousands 
There  nc\er  was  a  time  when  men  were  in  such  demand. 


Wl 


icii    our    oov 


eminent    stofiped    the    distillation    oi    po 


tal  lie 


alcohnl.  there  was  no  <;reat  dit'!irult\-  in  utili/ini;  the  labor  puwcr 
for  otlur  purposes,  tliout;h  there  were  doubtless  individual  cases 


It  is  nm  probable  that  anv 


war  can  ever  he  car- 


of  hardship 

ried  on  withnut  inilictmc;  hardship  in  individual  ca>es 


theles- 


tvcrytiiinf,'  p^ 


Xever- 
ossible  should  be  done  to  reduce  these  hard- 


ips  to  the  minimum. 


in  maiiv  indivulu 


lal 


cases  there  will  be  men  and  women  who 
can   not   ea>ilv  turn   their   skill   U^  account   in   the  essential    in- 


du>t 


ries. 


In  other  cases  it  will 


invohe  mo\inL;-  from  the  place 


called  home  to  another  place.  E\'en  thousih  the  other  place  be 
eipialK'  desirable.  nc\ertheless  the  change  may  in\ol\e  some 
real  hardship  in  addition  to  the  inc\itable  rei^rcts. 
providei!  the  transition  can  rcallv  be  made  wi 


Howexcr, 


thout  severe  hard- 
ship iir  j)o',itive  discomfort,  it  will  be  only  such  a  loss  and  sacri- 
lice  as  every  true  citi;^en  must  be  prepared  to  make  in  time  of 
war  and  which  lur  laboring  people,  like  all  right-minded  people, 
arc  pcrfcctlv  wil  ing  to  make. 


pc 

n  ordc 


r   to    neet   th 


IS  situation   adequ 


ateh 


ar 


<!  reduce  the 


hardships    and    di-comforts 


the   transition   to   the   absolute 


^2 


WAR    TFIRHT 


n|ininn,„,.  ,h..e  m„.t  he  a„  or,an.a,i„„.  Th.  ,„-,a,„.at,un 
.mn    . v..    „.,ok    and    corner.      The    Depannient    o,    Ll^ 

H     pr.,l,le,„.        lowever,   u„le..    „    ,s  a.Ie,,uatelv   .„p,H,,te.l     ^o 

.lat  u  „uu-  reach  i„,o  every  neighborhood,  n  „,av  he  ,,ke  a',n-e 
''^■■"""^■nt  wul,  one  .hon.and  feet  of  ho.se  trving  to  ilgh,  a  lire 
winch  ,.tuo,hon..and  feet  fnm,  a  hvdr  mt      '  -'»  '""-^ 

„    '';'  '""!  """^  '"  ''"  -  '-  ^^^  ""t  the  organization  can  ac- 

:V''7''''^'''''^^;'-'''''-Prol.Ien,,  UnuM,  „,  ,hen,ant. 
u-k  out  n.  own  nu.thods  of  pn.cednre.  Xo  n,an  is  w,se  enough 
t"  ■.■re.e  every  .h.ncuhv  uhich  may  ari^e  llouever  ,i,ere  are 
a  tew  dung,  which  „„n,.tohviouslyd.,.  h,  the  tir.,  place  ,t 
>hould  a,d  n.  dK.  d,.s,r,i.,n.ion  of  the  war  work  ,n  order  th 
a^much  o,  ,t  a.  pos.Me  he  taken  over  hy  those  indu.tr.es 
vlm-h  have  had  to  cut  down  the.r  prodt,ct,on  of  non-e..ent:aIs 
n  ^nte  cases  no  one  can  .av  „,  advance  how  „,anv.  there  need 
Le  no  closing  down  or  partial  do^mg  down  of  factories  Thev 
can  s,::,ply  turn  to  od,er  k.n.k  of  work,  to  the  work  which  pro- 
du  es  necessaries  rather  than  hi.xuries. 

In  the  second  place,  our  organization  .should  catalogue  every 

f"''^""   "'"'  '^  '"■   '^  lil^^l^-  'o  I'e   thrown  out  of   wo;k   hv   th^ 

clos.ng  ,,t  non-e..entiai  „,dustries.      ICvery  per.,„-.  training  and 

capah.ht.es  d,ould  he  noted  and  recor.led.      Then,  as  far  as  nos- 

,•  ""  ""^'  ^^■•"'  ^^'>    '"  ■-^'Ivan.-e  how  far  tin's  w,Il  he  pos^hle 

tl.e  per^,,ns  so  catalogued  should  he  drawn  upon   for  thelah,,; 

which  u, 11   he  re.iuire.i    for  d,e   necessarv  e.xpans.n  of  cert  nn 

essential  nidustries  which  mu^r   he  greatlv  e.Npan.led       It   „,„st 

c'  h,,rne  n,  nnnd,  that,  even  wuh  the  ni,,.t  rigid  eco,ion,v    n,ore 

abor  ,s  go.ng  to  he  needed  during  this  war  than  ever  was"  needed 

beiore,   that   the   den.and    for  additional    labor   in   the  essential 

"Klus.ne.  w,Il  mr.re  ,h;,n  balance  any  poss.ble  falling  off  in  the 

demand    ,n   the  .lon-cs^enti.-.l   industnes.      W„h    ih,s\rreu    fact 

■"•"-'•''-'"— n   that   it   ,s  just  as   utiportanr  that   .lur 

organ.zat„,„   diall  d.^cover  available  supphes  of  labor   „,r  the 


Tin:  iji;i.ATiiix   ov   riiKiiT  m  \\\\<   i.comimy 


23 


e.xpansinii  of  tlu-  oiciitial  industries  a-  tliat  it  >liall  [)roviilc  cni- 
l)l.i\iin.iu   ;.ir  tlic  suiiilus  lalior  iriiiu  the  iitjii-fsscntial  industries. 

In  the  thinl  place,  our  orj;anization  should  provide  with  the 
utniii-t  speed  adeijuate  traiiniig  schools  where  men  and  women 
ina\-  he  trained  I'or  the  in(hi>trial  needs  of  the  country  as  otVicers 
and  soMiers  are  now  heiny;  trained  for  the  nnlitary  needs.  This 
will,  m  many  respects,  he  the  most  imi)ortant  work  of  our  organ- 
ization, instead  of  waitint,'-  until  special  kinds  ui  skill  are 
needed,  it  should  anticipate  the  need  and  ha\e  men  and  women 
trained.  They  should,  while  undergoing  the  course  of  training, 
he  paid  a  standard  mini!..um  wage  which  will  enable  them  to 
live. 

'1  he  first  two  parts  of  the  work  of  our  organization  will  pro- 
\ide  the  essential  iixlustries  with  such  unskilled  labor  as  they 
require,  will  also  provide  a  certain  amount  of  skilled  labor  such 
a^  Is  already  trained  and  capable  of  being  luted  in,  and  will 
provide  employment  for  every  worker  in  a  non-essential  indus- 
try who  can  be  fitted  into  the  e--ential  industries.  The  third 
])hase  of  the  work  of  our  organization  will  provide  an  imme- 
diate living  wage  for  every  one  who  can  not  at  once  lie  fitted 
into  .in  essentia!  industry  and  will  also  provide  a  course  of  train- 
ing which  will  soon  fit  him  in  at  some  point  where  he  cai  arn 
more. 

If  our  orgam'zation  will  undertake  these  three  kinds  of  work 
on  a  comprehensive  scale,  we  can  transfer  all  our  productive 
energy  from  the  non-essential  in<histries  witliout  any  suffering 
and  with  onlv  such  inconvenience  or  hardship  as  ail  liigli-spirited 
anti  loyal  peojiie  are  ready  and  willing  to  endure  for  the  sake  of 
winmiig  the  war.  This  will  enable  us  to  mass  our  man-power 
wlicre  !t  is  ncedi'd  and  t(>  avoid  the  mistake  of  scattering  shot 
too  much,  it  can  not  be  too  often  repeated  that  this  war  will 
be  won  not  by  the  side  which  has  the  most  man-power  liut  In- 
the  side  which  manages  to  mass  the  most  man-power  at  the 
points  where  it  is  needed.  W'e  iiave  the  m;in-pi)vver ;  the  next 
thing  is  to  ma-s  it  wiiere  it  is  neeiled.  Nothing  else  will  win 
the   war.     Tiie   more   comprehensive   and   thorough-going   our 


34 


\v.\ 


1  IT 


plans  for  tl,.  nn^,.iu^  of  our  ^ast  man-power.  an,l  the  sooner  we 
fret  tlK-K'  int,,  ..peratinn,  the  sooner  the  war  u,ll  he  over 

11...  n.asMn.;  ,,t  onr  n,an-pow.r.  or  this  comentiauon  of  the 
nat.ona    ener;;v   upo„  the   uar  an,l   the  war  in,iu>tne>  is  to  be 
••'n-<nnpl,.hed    ...a.nly   through   con>Kle>-ahle   ehanL;e.-,   ot    occupa- 
nt".     I  hey  who  have  heen  ,loi„.^r  „o,hi„^.  or  .loin.^  thin^^.  that 
■     ..ave  „.,  !,ear,n,i,r  on  the  w.nnuis  -f  the  war  are  to'  heKU,  .loin- 
snn.ethn.f;    which    positively    helps    to    wn,    the    war.      Thi.    can 
''^-   .■'cco,nph>he,l    in    part    through    the   exe.c,>e   of   goven,n,ent 
auihnnty-con^cnption  of  men  for  the  ar.nv  and  the  navv  is 
M.ch   an   exercse   ..f  government   amhoriiv.      It    ,-   po.s.hle'  of 
cnnr.e.  'hat  laborers  as  well  as  soldiers  shouhl  he  conscripted 
IheTe  are  other  and  less  direct  n,etho<ls  hv  ^^hich  government 
authortty  may  aeco.nph.h  the  sa.ne  purpose,      liv  refusing  coal 
or  transportation  facilities  or  other  essential  eleme.its  to  an  iti- 
<-i.>try.  ,t  mav  he  closed  ,lown  or  greatlv  restricted  in  its  opera- 
f"ns.      [t    w,ll    therefore    he    o.n.pelle,!   to    <!i.cl,arge   a    ceilain 
munber  o,  men.      "I-hoe  mav  then  voluntarilv    .eek  en,pl„v„,ent 
'n  tlu-  es.en,,al  induXrie.     I!ut  thi.  redistr,lnuio„  of  tnan-power 
xvill  have  tM  be  accon.phVhe.l  n,:,inly,  i„  anv  free  countrv,  thnnrdi 
the   age,,cy   of   thrift,   euher   voluntarv   ,,r   invohmta.'v.      When 
tlie  pe.^ple  >tnp  buymg  a  given  article,  or  buv  it  in  smaller  mum- 
t.t.es  ,l,an  tormerly,  ,l,e  industrv  nn.st  either  do>e  down  nr  run 
""  a  r<.duced  .cale.      Th.s  will  rel-a^e  a  ce.tain  amount  of  urm- 

';"""■  ""':'"  ''''  ""'"^"-y  i"  'l"c:sti.,„  and  n.ake  it  available  for 
the  e"i-mial  industries. 

'n.ei-e  was  so  much  opposition  to  the  thrift  campaign  the 
nc'wspaper  interests  of  the  cot.nirv  xvere  so  ^cnerallv  arn.ved 
aga„,M  ;he  ^rovernmet.t  on  the  subiect  nf  tbvift,  as  to'  raise 'the 
qnest,..,  n,  the  ntin  I.  of  ,„:.nv  publicists  as  ,o  whether  it  woul.i 
n,.t  be  better  to  give  up  the  can.pa.gn  for  voluntarv  thrift  and 
a.lopt  the  genera!  policv  of  conscription.  Of  course  if  the 
pnvernn.cnt  should  adopt  such  a  policy,  the  non-essential  indus- 
tries would  be  cr.ppled  through  the  loss  of  met.  rpu'ie  as  effect! veh- 
ns  they  woul.i  thr.ntgh  the  lo.s  „f  custon.ers  in  the  program  .,f 
v.'Inntary   thrm.      The   pnxluction    of   non-essentials    would   he 


Tin:    KKI.ATIOX    01-    TIIRUT    TO    WAR    ECONOMY  35 

f..rril)ly  and  arl)itrarily  reduced  and  tlie  ci.n^uniers  of  noii-esseu- 
tial>  ui.uld  therefure  lie  compelled,  whether  tliev  hked  it  or  not, 
to  c(jn>iime  less.  This  would  result,  therefore,  in  a  kind  oi 
enforced  thrift.  Aside  from  the  general  unattractiveness  of  a 
wholesale  i)r()j,'ram  of  conscription  and  other  exercise  of  t^ovcrn- 
nient  authority,  the  proposal  itself  would  he  unnecessary  if  the 
people  were  willinj,'  voluntarily  to  do  wliat  it  is  propo-cd  that 
the  j,'oveniment  should  compel  them  to  do,  that  is,  cut  down 
their  consumjjtion  of  non-essentials. 

The  only  reason  why  it  i^  difficidt  to  get  capital  and  men  tu 
{,'0  into  the  war  indu>tries  is  because  they  are  so  profitably  em- 
[lioyed  in  other  industries.  1:  there  was  no  prolitable  employ- 
ment for  either  in  the  unneces>ary  industries,  bjtli  labor  and 
capital  would  be  glad  and  anxious  to  go  into  the  necessaiv  in- 
dustries. 

'ihe  only  reason  they  can  he  so  profitably  emphned  in  the 
unnecessary  industries  is  because  so  many  of  us  are  willing  to 
!>end  uur  incomes  on  ui.necessary  things.  If  no  one  would 
spend  any  money  on  unneccs.-^ary  things,  neither  ca])ital  nor  labor 
would  have  any  inducement  or  motive  to  continue  in  the  unneces- 
sary industries  or  in  the  production  of  unnecessarv  things. 

If  we  continue  -pending  lavishly  in  the  purchase  of  unneces- 
sary things,  then  profits  and  wages  will  be  so  high  in  the  un- 
necessary industries  that  large  funds  of  capital  and  large  num- 
bers of  laborers  will  remain  in  these  industries  and  will  not  be 
willing  to  go  into  the  war  industries.  In  that  case,  the  only 
method  of  getting  labor  and  capital  for  the  war  industries  will 
be  --r.iiic  form  of  conscription.  Having  made  one  econoiinc 
blunder,  that  of  continuing  our  luxurious  coi.sumptior,  of  un- 
necessary things,  it  will  be  necessary  to  counteract  the  results  of 
that  folly  by  an  exceedingly  chinisy  and  wasteful  device,  nauicK, 
the  conscription  of  capital  and  labor. 

If  we  are  unwilling  voluntarily  to  cut  down  our  expenditure 
for  unnecessary  things,  the  goveriinient  must  interpose  its  au- 
thority and  compel  us  to  do  so  whether  we  like  it  or  not  The 
conscription  of  capital   and   labor    for   the   necessarv   indusiiies 


36 


WAR    TIIRIl-T 


would  !)i'  OIK-  wiy,  Init  ,i  r.itlur  tluiii>y  diic,  .if  coinpellin^  lis 
In  I'tit  (Inun  onr  tdtiMunpticii,  If  capital  and  laluir  arc  forced 
into  tli.i-c  imhi-irics  whidi  ari-  made  ncccssarv  hv  tlic  war,  tlicrc 
will  111-  that  iinicli  lc->  left  to  produce  the  ihint,'s  which  we  can 
<;;et  almii;  w  'lioiit.  We  imi-i  then  jierforee  ci.iiMiine  le»  of 
these  lhinf;s. 

An.idier  rather  cliim-y  way  would  he  for  the  j^overiinieiil  to 
issue  \a-t  ^iniis  (,i  new  money  or  purchasint;  power  witli  which 
to  liny  war  supplies  and  to  hire  men.  If  we  individn.d^  are 
each  and  e\ery  ( .ne  left  with  a-  much  money  to  spend  as  we  had 
before  the  war.  it  will  take  as  many  men  to  produce  for  Us  as 
it  did  hefore  the  war.  Mm  when  the  i;i)vernment  lie.i;ill.s  to  ex- 
pend its  new  piirchasin;;-  pnwcr,  it  uill  he  hiddin^  a,t;ainst  us  with 
It-  new  money  and  we  will  he  hiddin-  a-ainst  it  with  onr  exist- 
in:,'  inclines.  This  will  sfiid  prices  skxward.  The  result  of 
these  inllated  prices  will  lie  that  we  can  not  huy  so  many  tlhn.^s 
as  we  did  hefore  for  the  sjmple  reason  tha-  our  existing-  incomes 
will  not  jiurchase  sd  ninch  as  they  did  hefore,  P.v  this  niclh.id 
we.  as  indi\iduals.  shall  he  forced  to  consume  les.  th;ii;  we  did 
before  the  war.  .XiTHher  way  of  pnttini,'  the  same  thuiLr  would 
be  to  say  that  the  ,l,'i  ivernment  with  its  new  purch.-iMii,;,'  juiwer 
would  outbid  Us  with  our  old  purchasino  power.  It  couM  pav 
such  a  price  for  war  supjilies  anrl  men  tiiat  capital  and  labor 
WiiuM  -top  produciiif,^  luxuries  for  us  and  ,^'o  to  producini;  neces- 
saries lor  the  ,1,'overnment.  We  should  then  iie  unable  t^  get 
luxuries  or  unnecessary  thin,i,^s. 

( )ii  the  whole,  the  best  way  of  compellins;  us  to  cut  down  our 
consmnption  of  umiecc-sary  luxuries  would  lie  to  tax  us. 
Whenever  I  p.iy  i  dollar  in  taxes  1  have  one  dollar  less  to  spend 
on  luxuries  and  in  ])crsu,adini;^  capital  and  labor  to  -tav  in  the 
lii.xurx-iiroducint;  imhistries.  .\i  the  same  time,  the  j,'overnmciit 
has  that  same  dollar  to  exjK-nd  m  the  purcliase  of  war  supplies 
and  in  jiersu.idin.L;  capital  and  labor  to  -d  into  the  war  iiidu.s- 
tries.  If  the  ,c;overnment  will  ta.x  to  the  bone,  so  that  none  of 
us  lias  anythin;:  t,i  spend  ,,n  frills  and  luxuries,  capital  and  labor 
will   have   im    mluccment    whatever   In   remain   in   the    frill   and 


TFIF.    RI-I.ATION    oi.    TUuiiT    TO    WAK    i:C()\i)MV 


Ii!\nrv-]irn(liuiii^'   indii-tru'--.      (  )n   ;!ic  .iIIkt   ham!,    the 


iiiciil  w  ill  li;iu'  ail  aliiimla 


11  |it_'r>ua(ling  c 


lui'  to  >iK'n(l  en  iicce>>ar\  wa--  ^lI])|llIt.■s, 


•apital 


and 


lalxjr  U)  ^()  into  the  \\a 


r  iiuiiis- 


tric- 


AiKitlicr  nic'!i(Ml,  not  r|uitc  so  rikhI,  is  for  tile  tjovcriinient  tn 


arirch-. 


>iK'v  \\';ich   1   >i)eti(l   for  a  liheriv  1 


loIKl 


[  t'.in  not  spciiil  fur  Iiixinii 


ill 


c  ncci'>>arics  ot  war. 


I'p  to  tl 


)i!'-iu's  inni'li 


th 


,'o\irnnK-nt  has  it  to  v])(.'n(l 
IS  point,  h(.)rro\viii2:  accotii- 


c  >anic  re-lilt  as  taxiiu 


H 


o\\e\er,  alter 


1  1 


ia\e 


j;()t  iii\-  iiherty  bond,  my  rredit  is  a  little  better  th.ni   it   would 


ha\e  lieen  if  1  liad  paid  in  taxes  the  same  anioiii 


It  as  1  paid  for 


the  bond.  This  ina\-  lead  me  to  inirelia.se.  on  credit,  a  little  more 
liberally  than  1  would  otherwise  have  (lone.  In  that  e.ise  1  >hal! 
^Illl  be  tryint,'  to  keep  capital  and  labor  m  the 


<lii>lries  and  (JUt  of  th 


e  w  ar  iiii 


Inst 


rie< 


here  is  no  more  elemeiitarv.  fundamental  or 


to  be   le 


iiniiecessarv  in- 


important  tnitli 


I  rued 


liy   our  people  than   the  sini[)le  truth   that  every 
time  any  one  spends  a  dollar  for  an  unnecessary  thinjj  he  is  fur- 

the 
i\'  out  of  the  war  in- 


an   mduccnient   to  capital  and  labor  to  continue 


in 


])r</diictinn  of  uniicce.->ary  thint^s  and  to  st; 
(lustries.      lie  ^houId   turn  that   dolla 


r  over  to  the  i;o\ernment 


to  be  spent  lor  the  nt 


th 


T 


len  tile  '^jv 


eriiinent  c;in 


use  It  to  induce  capital  and  labor  to  '^o  into  the  necessary  ind 


us- 


tries 


That 


Is  verv  111 


ucli 


bet 


ter  ill  every  way  than  con.-,cription. 


CHAPTER  IV 

The  Relation  of  War  Thrift  to  Reconstruction  after  the 

War 

Wlint  will  hnppni  uIkmi  tiu'  -.ivcrnnunt  Mops  Inn  in-  ^^ar 
Mipplics  and  hirin-  men  i.-r  uar  pinp, ,.i-. ;-  Arithmetic' u iH  ,;,u- 
viiue  anv  ..nc  lliai   nnlc-.  private  r.ti/eiis  arc  then  prepared   to 

''">    """■<■  .- '-  •■""!  'i"i'  'ii'>re  men  than   ihev  are  ii.nv  (l..;n-. 

there  nni^t  1  e  a  ^hnnp  m  l)nv,n-  and  CMisiderahle  inieniplnvineiU. 
\\e  shall  then  iia\e  in^t  the  reverse  of  the  enn.litmns  which  we 
had  when  the  lt-u  ernnient  l^-an  Iniyin-  such  va^t  r|namities  ,.t' 
\var  supplies,  and  hivin-  >,)  manv  men  t'nr  war  piirpo~e>.  If  at 
that  lime  private  eiti/en-;  had  cut  d.,wn  their  pinrluses  m 
anvMini-  n  .iresp.  .ndin-  tu  the  increase  of  .tjovernnient  purchases, 
there  would  have  heen  n,.  total  increase  of  purchase-  and  no 
inflation  of  prices.  i:„t  when  private  eiti/ens  tried  to  keep  ,ip 
the  .ild  rate  .,1  pnrchasin-  while  the  -.n-erntnent  was  pnrcliasin- 
enornions  .piantities  of  war  supplies,  there  was  an  enormous  m" 
crea-e  in  total  purchasing  and  cons.derahle  inllatioii  of  prices 
Dellation  of  prices  will  f-olhuv  the  clo-e  of  the  war  a-  certainlv 
as  mtlation  I'ollowe.l  its  he-innin-  unless  the  purcha-es  of  pri- 
vate citi/ens  expand  enou.^h  to  make  up  f,,r  the  c.  .ntractioii  of 
.L:o\tTiiment  purchase-. 

Ilou  can  we  mana-c  to  have  private  citi..-ens  nierease  their 
I.urciia-e-  when  the  war  i-  overr  They  will  scarcelv  he  m  a  posi- 
tion to  ,1,,  ,h,s  if  they  per-ist  in  spendm-  all  their  monev  now  as 
last  as  they  -et  it.  If  they  sjHMid  it  lavi-hly  now.  ihev  will  ,.n|e 
force  price-  up.  ,uid  iliey  will  n,,t  have  u  t,.  sjiend  when  the  war 
i^  over.  Ihev  u  ill  inilale  price-  now  ami  have  i,.,  me.an-  of  pre- 
^etitin-  deflation  when  the  war  i-  over.  lint  if  thev  -ave  tlteir 
iiionev  now  and  mvc-t  u  in  thrift  stamps  and  liliert\   hond-    thev 

J8  ■  • 


Tin-;  Ri-,i.Ari()\-  oy  \v.\i<   nirniT  to  ki cov 


STRI'criiiN- 


y> 


\\U\   lint   lie   I) 


idilllU 


;i,L,'aiii^t  tlif  ''(i\frntiR-nt   for 


iii-i'i|iRnlly  ilifv  will   not   111'  iiillatiiif;  pricL->  ii 


men : 


n\v. 


Ulu'u 


tlic 


\\.ir  i>  I'wr  tlii's-  will  have  i 


I)iiichn> 


iujiu'v  with  whiili  to  incrcaM.'  their 


and  ihcrclorf  tliev  wil 


lirvNtiit  a  dellation  of  price- 


only  a  soiiiid  method  oi   lliiancin<'  tile  war,  it  is  al 


iiethod  of  in 


lore  tlley   will   liave  tile  power  to 

1  he  ])rot;raiii  of  war  thrift  i>  not 

so  the   l)est 


'iiri'iK  a;;,iin>t  dellaiion  of  prices  and  },^ene 


nil 


IHISI- 


iiess  sta},'iiatioii  ill  the  decade  after  the  war 


W 


hen  a  man  invests  a  ])art  of  Ins  income  in 


;o\  eminent  ^ecnri- 


tie-  instead  of  siienth'nj,'  it  all  for  immediate  con>iinii)t 
ii'eiely  delerriiij,'  his  coiisiiniptioii.      Instead  of  coiisun 
now.  he  \irtually  saves  np  liis  nioiiev  in  order  to  1 


ion. 


tie  IS 


nil''  "oods 


)U\' 


tl 


on,  when  men  can  he  spared  to  produce  the 


111  as  thev 


lein  later 
m  not 


l<e  spared  now. 


siiniiiu 


here  is  a  donhle  advant 


isje  in  tlii- 


less  while  tlie  war  is  on,  lie  release.s  inan-])uuer  f 
[irodiiction    of    thini;s    which    he    can    do    without.      ' 
power  is  therefore  availahle   for  ,t,fovernment  service. 
:;i\iii,^'  m  die  ])rc-cm,  he  will  have  more  money  to  spend  in  the 
future,      lie  can  then  increase  his  consumption  and  emiiloy  the 


l>y  con- 
ro:n  the 


hat    man- 
li\-  thus 


man-power  which  will  he  released   fn 


'in  ^'overnnieiit  service. 


1  he   first   of   these   purpo.>es,    tli.at    is,    the    releasing,'   o\    nian- 
I>ower  from  the  production  of  luxuries  in  order  t!i;it  it  may  serve 

ire  import;int  of  the  two. 


ih 


overiiment,  is  hv  tar  tin 


even  the  second,  that  of 


l.ut 


eemployiiij,'-  that  man-power  when  the 


j^overnment  is  t!irou<^li  with  it,  is  of  great  imjiort 


nice. 


to  husiness  men  and 


ahonng  men.     It  would  be  a  verv 


-IK-cially 
liort- 


si-hted  ])olicy  to  ignore  either  of  them,  hut  the  heantv'of  it  is 
that   hotli   purposes  li;mg  together.      ^ 
without  also  promoting  the  other.     'I'lieret 
citizen  should  i)rcach  and  practice  war  thrift. 


on   can   not  promote  one 


ire,  everv  enlightened 


I  he  sound  comnion-sciise  of  the  nei 


lie  ot   e\erv  iiati' 


e\er  amounted  to  anything  has  always  ajifiroved  of  t 


111  that 


in  It  ai 


sapproNed  of  extravas 


1(1 


•  nice.      It  IS  only  when  a   tew  half-cdu- 


c-ited  people  get  slightly  m  iphisticated  that  thev  hen-in  t. 


in   the   jicstilential   nonsense   that    we   [iro-pe 

']  he  thrifty  person  spends  money,  and  sjieiKls  it  Ireelv, 


nidulge 

r  li\    extravagance. 

lor  thinsrs 


40 


WAU     lUKlIT 


lit  l.ir<;(,'  aiiil  j)(.-iniatu'iit  \alm',  nr  I'nr  tliiiiLjs  wlm-li  Icaw  iiiiii 
stmn^'iT  I'liysKaMv ,  niuiitally,  iiinrally  "r  I'l'dHuiincally.  Siah 
pfopli'  .L;ft  oil  ill  tlu'  wiirhl  while  tin.'  tlinitli'ss  pecjplc  never  ini- 
jirose  their  eninlitiDii,  'I'lie  thritty  iiatnni  lik-'ivise  prospers 
wli.le  the  ihritlle^-.  nation  remains  in  jjoverty.  The  thiit'ty  na- 
tion is  the  nation  to  wliidi  men  iinnii'^rate  to  improve  tlieir  con- 
dition. 'I'lie  thrittle>s  nation  is  tiie  nation  from  which  ihey 
C'mii;rate  lo  <;et  awa\-  iroiii  hail  eoiulitams. 

'1  he  larj;est,  tiie  nu»t  iini)ortaiit,  and  lar-reachinp;  purpose  f(jr 
whieh  a  man  can  sjiend  his  money  now  is  lor  national  defense. 
lie  wlio  spends  lii>  mone\'  in  such  a  way  as  to  injure  the  future 
of  our  coiintrv  mav  ni)t  he  laying;  up  ireaiure  in  Heaven,  In"  ''e 
is  certainly  laying  up  treasure  on  earth  for  his  children  aiu  .■:■, 
children's  children,  liesides.  our  j,'o\  erniiient  pays  the  money 
all  liack  with  interest.  It  is  this  latter  aspect  of  the  case  which 
will  he  of  j^reat  importance  in  the  days  of  recoii;truction.  It 
is  this  which  will  eiiahle  us  to  tide  over  that  tryint^  period  when 
we  are  reahsorhin^  into  producti\e  industry  the  man-power 
whicli  is  now  absorbed  bv  the  war  and  the  war  industries. 


CHAPTER  V 

Compulsory  Thrift 

II  CISC  the  pciiiilf  (Id  nut   vdiiintarily  adfpt  the  general  pro- 


nain  (It   tliriit.  tlii-v  wil 


he  ciinipfl 


(I   U 


circiinistaiu-es  to  rc- 


(Itirf  tlK-ir  CdiiMiniptKin  wIk-iIrt  tlicv  like  it  or  iKit. 


tliR-c  iinncipal  incaii^  liy  uliuli  this  will  h. 


first,  the  most  (iiiins\-  and  the  least 


aeeomphsiie 


Here  arc 


SCI 


the  (hrert  exercise  ot   o 


il 


entitic  method  is  tliroiifjh 


certain  iik 


hist 


compnIsKin   m    i;i\ni[r  priority   to 


nes. 


'I'liose  industries  which  the  wisd( 


lie  ot'ficials  decides  to  he 


non-essential  niav  k-  ret'nsc 


n    It  puli- 


(1  raw  ma- 


terial 
of  th 


tiiel 


or  transpdrtatioii. 


Tl 


e  in(Uistne> 


th 


lis  siiuded  out  for  ott 


le  consumers  of  tlie  products 


)f  iiecessitv,  re(hice  their 


consuiiiptidu 


tliis  doiilnless  looks  like  a  verv  direct 


icial  stranj;nlation  must, 
'I'o  a  Prussianized  niiiul 
ind  effective  wav  of  coin- 


pelhiiL,^  peojilc  to  consume  what  they  ou),dit  to  consume  and  stop 


consumm 


p  the  thinps  they  ouf,dit  not   t 


o  consume. 


]•: 


\en   tins 


letliod  is,  of 


con 


rse.  justified  if  there  were  no  hetter  method. 


The  necessities  of  the  war  situation  require  that  the  war  and  the 
war  industries  shall  have  precedence  over  cvervthint;  else.     The 


redirection  ot   our  national  enerjjv  must  he  effected 


and  a  had  ' 
done   at    al 


lay  of  doin^'-  it  is  infmiteK-  hetter  than  not 


someliow, 
J,'elliii.'  It 


ethod  if  the  i)e 


he    j::overnnient    is   compelled    to   resort    to   i 


lis 


people  will  not  do  it  in  a  lietter  way,  and  sliotild 
'he  pcdple  wh.i  have  made  it  necessarv  should 


m 

not  lie  criticized.       I 

criticize  themselves. 

.Another  way  of  acconiplishin.i,'  the  same  thinq-  i^  ihrourjh  the 
inll.ition  of  prices.  If  the  peo|.le  are  not  willing,'  U>  economize, 
but  insi.st  on  lniyin<^  as  much  as  ever,  thev  nierelv  hid  af,fainst 
the  government.  The  {government  will  have  supplies  whatever 
the  Cost.     It  will  did  high  eiiuii<^di  to  get  them  away  from  its 

41 


I 


42 


W\H    Tllkll  1 


private  cniKpctilors.     This    lUni"-   priir^  up,   ami    ri'-iiiL,'   jitiifs 
make  it  imiMPs^ilile  tCr  jn-oplc  with  lixcil  iiuDiiif-  in  liii\  a>  iiiikli 


tht\ 


ici'iu-. 


lu'V  ,it  lea"-!  arc  iniicd  li\    thi>  -.imaiiuu 


to  rcdiu'c  tluir  i"iwiiiiipti 


'11 


11-   nirllii    I    wniilil   IK  it    \\i  .r 


k 


\  fiv   l/aclU  .    Ill  ml  till-    >l.iiii|- 


|ii)ini  di"   the  iiiiiiKili  i!i.'  pi\'~i.iil.   II   all   ilii'  ptnpli'  liail   ll\^■ll   iii- 


C0111CS.     Some 
crcasins:  a 


)f  tl 


K'     iKiipU',     111  i\\t\  IT,     lllld     lllCir     lllCiMIK'-     Hi- 


st a';,  nr   i.i^lvr  than,  pru-cs  ri.-r 


10  iiri  Miiu'cTs 


of  tile  Iii^'li-]iri(i-'il  rMtiiiii(  iiliiii --.  c~|)i.(.iall\'  llin^i-  wiin-i-  iiu'dinc 
loiiio  to  tiu-iii  ill  ilic  I'linii  >>\  piiifits,  may  11111!  i1k'iii>(_1v(.'-i  in  ,1 
position  oi  greater  relative  iini^iierily.  'llair  iiR-oiues  are  -•o 
increased  as  to  enable  them  to  hiiy  iimre  .i^nod-.,  cvi'ii  at  tlie 
liii^li  jinci.'..  than  iluy  e\t'r  huii^ht  hfiiiru.  'Iliis  ihr^w^  the 
eoiiipulMiry  sa\ili^'  eiltiiely  mi  tlio>e  \\lii'--e  iiuume-.  do  iKit  keep 
]jaee  with  jii  iees. 


(  ). 


elasst'-'.   e^nciia 


llv   Ih 


lo-e   \\ho--e   incoiii 


es  take   the    I 


e    I  Dim 


of  wages  or  ^alari^.'>  whiih  are  friinieinl)'  readiii-ted,  liei^iii  an 
ai^itatinii  for  increased  wa^oN  ;uid  >alarie-'  im  the  ^nuind  that 
t!ie\'  aiL-  III  it  .alilc  to  !i\e  si  1  well  111  war  limi'  as  lliee  did  in  pcare 
time.  It  dues  nut  sciin  to  dcriir  to  iIkiii  that  iiK-ii  niiL^ht  ii<it  to 
Ii\e  --11  well  in  war  time  as  in  juai-e  time.  I  he  stnry  of  the 
ai;it;itiiin  for  iiuTca-ed  ini'nnirs  wliuh  will  eiiahk'  pen])le  to  hiiv 
as  111  lie 


on 


h  under  war  price--  as  they  hniij^ht  under  ])i-ace  prices 
tile  will  lie,  line  nf  the  must  -urdid  and  hiimihatiiiLr  ua 


parts  (it 

the  lii-tiiry  of  the  war.      it  is  only  exceeded  hy  the  story  of  the 
oppii-itiiiii  to  heavy  taxatinii. 

The   final   re-ult   ni    the   tendency  of  profits  to  increase,   and 
of  the  pruiupt  aL;itatMiii   fur  increa-ed 


waues  am 


1  .sal, 


iries,  w  to 


Jie  entire   Imrdeii  of   this  kind  of   enfnrced   thrift   iipi 


thrnw   t 

those  \vh(jse  incomes  can  tint  he  i 


ncreased  m  war  time. 
r.y  far  tlic  most  scieiitilic  and  least  clumsy  method  nf  enforc- 
ing; ihiifl  is  the  thiid  meihdd.  that  is,  the  methnd  of  taxation. 
A  prnperly  .adiusteil  sy-teni  nf  taxat^m  will  compel  all  classes 
who  are  in  a  ])dsitiiin  tn  eci  aii  niiize  to  do  so  duritiL;  the  eontin- 
u.iuce  df  the  war.  It  will  retard  or  prevent  the  inllation  nf 
prices,  and,  it  w  ill  lea\e  tu  the  [jeople  them.sclves  to  decide  what 


niMI'll  SUKV     I  II  Ml   I 


4.5 


they  will  loiitiniu-  [u  Ijuv  ami  in  what  i|iiaiititii's  tlic\  will  i.<>\\ 
tiiiuf  tip  l)ii\  tlu'iii  wilii  ilu'ir  ilmiiiii^lii.'(l  imiiiiic>.  1  lu-  pinpK' 
ilu'iii^ihc-  lan.  111  j^ciH-ral,  (Iriidi'  iimrc  mtclli,i;iiilis  liian  W  a-li- 
iii,L;ti'ii  I  iltk'ialdiiiii  v\liat  llu-\  want,  ami  what  iiKln^tiu-^  sliniiM 
lie  kf]it  ^iiiii-  ti'  biipjjly  tlK-ir  waiU~.  \  n-(liuii(.n  ni  ,  i  .ii-unipii.  ii 
will  lie  made  \ecessary  by  rc'iMin  ni  the  ndiRfd  nu'Hiu-.  u- 
Miltiii-  I'lMiii  lirav\  ia\.iiiMn,  Imt  tin.'  |pim|,1c  tlK-iii-fK  e^  can  thru 
diH  idc  what  tluy  will  Imy  \v  itli  tlinr  rnhu'cd  incciiU's.  Thcv 
will  ^i-iRrall\  drcnlc  that  (|iU'>li(in  iiicirt-  wi^'K-  than  it  can  !"■ 
(Ifcick'il  fur  ilu-ni  li\  pri.iriiy  huanU  or  any  nthcr  hraiich  <>(  .i 
hiiri-aticiatic  sx^tcni  ni'  cdtitrui. 

I'lidir  a  wi>c  systi-in  ni  taxation.  ,aml  in  '-d  far  as  the-  ta\cs 
alU\t  the  l|lR■^tiMn,  j.ii\alc-  imrihaNf-  iiiii>t  nf  nfcc^^iiv  dtcrca>c 
111  exact  pi  iip.n  ti'in  a^  ^^nvcitinu:  ]iurchasc>  imrcaM'.  j-dr 
cxcry  dnllar  which  the  j^'i  i\erninent  ha-  to  spend,  -otne  pri\ate 
individual  has  a  dollar  le-^  to  .--pend.  I'lii-  i^  the  nm-t  exait 
and  '^cientilic  \\;\y  \et  de\  i>ed  to  prevent  private  individual-,  from 
bidding' a,i;ainst  the  f^ovcnnnent  and  intlaiinj,'  prico. 

It  scL'tiis  to  he  accepted  a-  a  foregone  conclusion,  however,  hv 
certain  students  of  ]iulilic  linance  that  such  a  war  as  the  |ires- 
ent  one  could  not  po>sil,|\  Iv  inianced  either  exclusivelv  or 
nianilv  hy  taxation.  Hciri-ow m;,'  on  a  vast  scale  is  therefore 
assumed  to  he  necess.arx .  It  doe.s  not  seem  t<'  the  present  writer 
that  any  one  ha.s  set  torth  atleipiate  reasons  tor  tiiis  view.  The 
])urpose  of  this  note  is  to  discuss  the  .general  as])ects  of  this 
(juestioii.  without  j^oinL'  into  di-tail  as  to  the  i)articular  forms 
or  methods  of  taxation  which  should  he  a(io[)ted. 

i  here  m.iy  he  differences  of  ojiinion  as  to  just  wh.'it  is  meant 
by  the  word  "  im]iossihle  ""  as  it  is  used  by  those  who  assert 
the  impossibility.  'Ih.at  very  heavy  taxes  would  be  re(|uired  if 
tlie  sovertiment  should  undertake  to  pay  the  expenses  of  the  war 
without  lorrowiuij.  and  that  such  heavy  taxes  would  i)rotoun<llv 
disturb  Inisiness  affairs,  may  be  taken  for  ijranted.  If  tlie  ef- 
fective incomes  ot  the  peoi)le  are  ntaterially  reduce  i  by  taxation, 
they  will  have  materially  less  to  spend,  and  this  ;ilone  will  j:jreatlv 
disturb  all  businesses  whose   function   it   is  to  supplv  the  people 


44 


WAR    TIIUUT 


witli  what  thcv  want  to  1;: 


uy  with  their  ^pciKh'nc;  iiioiie; 


But 


tlK-  saiin-  1-  true  of 
L-h;i 


oorrow  111'; 


L'nk 


the 


peojile  thul  means 


ot    piirchaMiij,'   j;o\ernnient    bonds   without    reducinj,'   their   inir- 
chases  of  oilier  tliiiij;s,   the 
occur.     What  tlicy  spend  t\ 


same  (hsturhance  ol 


iniNiiie- 


ill 


,ni\ernnieiit  bonds  would,  in  th 


etiectivelv  (h\erted   from  the  iiorinal 


is 
course  of  ex- 


jienihture  as  though  the  same  anion 


ot  tax  receipts 


lit  were  -jiciit  in  the  purcliase 


If, 


on  the  other  hand,  tht    jieople  find  means  of  purch, 


ISIll!. 


government   Ijonds   witliout    reducing   their   purchases   of   other 
thing*,  another  kiHd  of  disturliance  in  the  form  of  an  inllation 


III  prices  wil 


result.     Whether  this  form  of  disturl)ance 


IS  worse 
need  not  concern  us  here,   since  we  are 


than  the  other  nr  not 

discussing  tlie  jiossiliility  of  raising  enough  revenue  by  taxation. 

not  with  the  relative  merits  of  th 

may   lie   remarked,   howe\er,    that    to   tur 

g(jV 

the 


ome  otlier  methoc 


th 


It 


n   luonev   over   to   the 


ernment  in  the  form  of  a  loan  and  then  proceed  to  hid  against 
government  for  supplies  by  undiminished  inuTha'-es  is.  ju 
part  at  least,  to  nullify  the  loan.  It  i>  virtually  to  turn  some 
money  over  to  the  government  and  then  comjiel  the  government 
to  pay  a  higher  jirice  for  its  supplies.  To  turn  the  .same  amount 
of  money  over  to  tlie  go\ernnient  and  then,  by  that  full  amount 
to  reduce  one's  own  jiurcliases,  is  to  gi\e  the  go\ernment  tiie 
lull  benelit  of  that  moiRw. 

It  is  of  the  utmost  imiiorlauce  that  we  distinguisli  at  the 
start  between  the  economic  and  the  political  limits  of  taxa- 
tion. ]',y  the  economic  limit  is  meant  liow  much  the  jieople  c<)iili{ 
jia\-  in  the  form  of  taxes  if  thc\  were  \\'illing.  lly  the  political 
limit  is  meant  luuv  much  they  will  bo  7^-tUiiui  to  pav.  broin  the 
standpoint  of  the  legi-lator  and  the  administrator  the  latter 
is  (|uite  as  im[)ortaiit  a  i|uestion  as  the  former.  Xo  matter  how 
much  the  people  could  pa\-  in  the  form  of  taxes,  he  dare  not 
put  upon  them  more  than  they  are  willing  to  jiav.  If  heavy 
taxes  would  provoke  resentment  and  ])olitical  revolt,  it  would  be 
a  great  mi'-take  to  levy  them.  jiist  as  u  is  better  to  lose  a 
do/en   battles   than   one   election    if   losing  an   election   meant   a 


COMPl'LSORV    TIIKIIT 


45 


vote  nC'Tinst  the  continuance  nf  the  war, 


it  would  be  better 


to  adopt  tlie  nio>t  chiui-y  and  un^cicntiHi:  method  of  raising 
revenue  than  to  lose  an  election  if  it  .Ntoppcil  the  war  prenia- 
turelv.  l-'roni  the  standpoint  of  any  government  authority  it 
might  literallv  be  impossible,  therefore,  lo  ("inanee  a  war  by  taxa- 
tion even  though  the  people  were  abundantly  able  to  pay  all  the 


necv 


•arv  taxes. 


1'  academic  economist  who  was  giving  advice  to  the 

nt  as  to  what   it  ought   to  do  in   the   matter  of   war 

led  to  ha\"e  regard  to  the  political  lim- 


Kven  a 
go\ernme 

finance  would  be  c(im])e 
its  of  taxatiijii.      !f,  iiowever,  our  ac.-ulemic  economist  were  not 


aih 


tl 


le 


joxernmeut    nu 


t    tl 


le   ])i 


the 


mselvc' 


tl 


le  case 


would  be  dit'fereiit.      If  he  were  tr\ 


to  intluence  the  de'Msion 


)f  the  government  ot'"'  ial  who  had  the  immediate  jiower  of  de- 


ciding tile  question,  b 


ot  course,  consu 


ler  the 


pn 


ratio  of  feathers  u>  squawking.  But  if  his  jiurjiose  were  to  in- 
fluence the  people  themselves  and  their  decision  as  to  what  kind 
of  a  financial  policy  they  would  support,  the  question  o*^  stpiawk- 
ing  need  not  enter  into  his  discussion.  It  would  sound  rather 
futi'e  to  tell  the  people,  "  you  are  abundantly  able  to  pay  such 
and  such  amounts  in  taxation,  but  you  do  not  possess  the  neces- 
sary loyalty  or  fortitude,  therefore  you  will  resent  sucli  taxes  and 
refuse  vmir  support  to  the  government  or  the  party  which  levies 
them.  I'or  this  reason  it  is  impossible  to  finance  this  war  by 
taxation.  Yon  must  therefore  insist  that  your  gm-ernment  should 
raise  its  money  in  ways  which  will  lie  more  pleasing  and  less 
irritating  to  you,  that  is,  you  must  insist  that  the  government 
borrow  most  of  the  money  from  you  instead  of  taxing  you  be- 
yo'-  1  what  is  agreeable."  The  only  sound  and  sensible  reason 
for  talking  to  the  general  public  on  the  subject  of  wai  finance  is 
to  try  to  make  them  willing  to  support  whatever  method  looks 
best  on  purely  economic  grounds.  In  so  far  ,'s  taxation  is  a 
godd  method,  the  purpose  of  pubbc  discussji-in  is  to  make  the 
people  ri'/7//ni/  to  pay  whatever  they  car  pav  in  this  form,  not 
to  conxince  them  that  they  can't  [)ay  more  ilian  they  are  zvilliitg 
to  pay. 


46 


WAR    riiui 


Assiiminjj  tlint  \vc  arc  considering;^  the  limit=  of  taxation  from 
the  standpoint  of  the  f,a'"tTal  pubhc  and  not  from  that  of  the 
government,  the  lei^islator,  or  the  tax  achninistraior,  and  tliat 
we  arc  therefore  interested  in  the  economic  laUier  than  the 
[jiiHtical  h'mits  of  taxation,  to  what  extent  and  in  what  sen-e 
wonid  it  he  impos>ihle  in  finance  a  war  of  this  mai;"nitnde  h\- 
taxation  alone  r  In  liie  lir.Nt  phice.  and  with  some  (|ualifications 
which  will  lie  mentioned  later,  the  a\eraj;e  man  can,  if  lie  is 
willini,',  pay  as  much  in  the  form  of  taxes  as  he  can  in  the  form 
of  loans.  A  tax  receipt  i>,  less  dcsirahle  jirofjert)-  than  a  gii\ern- 
nient  bond  and  he  may  not  he  so  willinj;'  to  buy  the  one  as  the 
(>/  er,  but  so  far  as  In's  ability  is  concerned,  it  is  as  j^reat  in  the 
one  case  as  in  the  other.  The  jiresent  writer  can  testify  that,  in 
his  own  case,  at  least,  every  dollar  that  he  has  spent  on  jj;ovcrn- 
ment  securities,  lie  could  have  sjient,  qrite  as  easilv,  Init  much 
less  j^Iadly  ])crh;ips,  in  taxes.  The  governn'cnt  may  be  able  to 
coax  more  money  from  the  average  man's  pocket  bv  ottering 
him  a  bond  than  by  offering  him  a  tax  receipt,  but  that  is  a 
political  rather  th.m  ;m  economic  f|uestion,  though  it  is  a  vcrv  im- 
portant and  a  perfectly  legitimate  question  for  the  government 
to  con-i.lcr.  The  people  who  are  to  be  taxed  are  not  com])elled 
to  Cdusider  it  at  ,dl.  If.  therefore,  we  were  to  consider  the 
que-tion  in  this  general  form,  without  the  qualilicatioii;,  which 
are  to  fallow,  we  should  have  to  conclude  that  it  is  as  easy  to 
finance  a  war  by  taxation  alone  as  by  borrowing  or  bv  a  conibi- 
nation  (ii  bnih.  .Men  can  not  lend  the  government  anv  more 
mciney  th:,n  they  ;ire  able  to  part  with,  and  if  thev  are  .able  to 
part  with  it  at  all,  they  cotild  p;irt  with  if  in  the  fnrni  of  taxes 
as  well  ;is  in  the  form  <'f  loans  to  the  gmernment. 

Tlic  lir-t  qualification  tn  liu'-  •;wee[)ing  conclu-ion  is  ba-ed 
on  the  fact  tli.at  a  government  1  mid  is  an  a-set  while  a  tax  receij)t 
i^  11"!.  A  man  wb^  po<>;es>e-;  ,a  government  bond  is,  other  things 
equal,  bitter  off.  ninvc  solvent,  further  I'mni  ib,,.  verge  of  bank- 
riip;cv,  and  ha-  better  credit  than  he  wnnlii  have  if  he  merely 
held  -A  tax  receipt  lor  a  like  .amount.  .\  go\ernnicnt  bond  is 
liank.ablc  but  a  tax  receipt  i-  not.      A  man  who  i^  doing  business 


COMPULSORY    THRIFT 


47 


partly  on  credit,  will  he  in  a  much  better  financial  condition  and 
may  carry  on  his  business  with  less  disturbance  after  he  has 
spent  a  large  amount  on  a  government  bond  than  he  would  be  it 
he  bad  spent  a  similar  amount  in  taxes.  In  some  cases  this  is  a 
matter  of  great  im])ortance.  On  the  other  hand,  this  leads  to  a 
\ery  dangerous  tendency,  not  so  much  on  the  part  of  the  inisiness 
man  as  on  that  of  the  general  consumer.  He  is  tempted  to  use 
his  new  asset  as  a  basis  for  credit,  and  to  continue  purchasing 
goods  in  imdimini^hed  quantities,  thus  inflating  prices,  producing 
profound  business  disturbances  and  necessitating  wholesale  eco- 
nomic readjustments.  This  consideration  goes  a  long  wav 
toward  nullifying  the  advantage  of  unimpaired  credit  to  the 
business  man. 

Another  and  a  more  important  qualification  is  that  any  tax 
system  is  intlexible  and  mechanical  in  its  operation.  Because 
two  men,  A  and  R,  have  equal  incomes  it  does  not  follow  that 
they  cm  part  with  e(|ual  sums  of  money  with  etiual  disturbance 
to  their  economic  relations.  A  may  be  engaged  in  a  business 
which,  in  the  interest  of  the  war,  ought  to  be  expanded,  while  B 
may  have  no  such  opportunity.  A,  for  example,  may  be  a  wheat 
grower  who  needs  a  tractor  to  enable  him  to  increase  his  crop, 
while  B  is  a  manufacturer  of  confectionery  whose  business  ought 
to  be  contractetl.  If  both  are  taxed,  let  us  say,  to  the  amount 
of  one-fourth  of  their  incomes,  it  might  prevent  A  fnjm  buying 
the  tractor  and  therefore  restrict  his  production,  whereas  B 
iiiigl.t  continue  on  his  former  scale  of  production.  A  govern- 
nieiit  Ic^an.  however,  can  adjust  itself  more  easily  to  the  situation. 
.•\  might  belter  ])ut  a'l  the  monev  he  can  part  with  into  the 
expansion  of  his  business,  whereas  B  might  put  half  his  year's 
income  into  government  bonds,  e\en  allowing  his  plant  to  de- 
teriorate somewhat  througli  depreciation.  In  this  case,  the  go\- 
ernment  has  secured  as  much  money  as  it  would  if  it  had  taxed 
tlu'iu  lioth  to  the  amount  of  one-fourth  ^if  their  incomes.  At 
the  same  time  it  has  permitted  .\  to  expand  a  busine-^s  which 
needed  exi)ansion  and  B  to  retrench  in  a  business  where  retrench- 
ment was  desirable. 


48 


\\  Mi    TIIKirT 


( )ii  the  (itluT  hand,  there  is  the  possibihty  tliat  the  opposite 
re-uh  wduUl  loilinv  —  iliat  i-.  it  is  (|uitc  possible  tliat  A,  who 
(iu,!;ht  to  buy  a  tractur  and  in^rca>c  his  ]iro(kK'tion  of  wlicat, 
would  ck'iide  to  buy  a  .L;o\eiiini(nt  bond  in>tead,  and  that  IJ,  who 
oiif^ht  to  rcti'eni'h  bi>  liii>n)c^-,  would  rcf'ise  to  ])u_\'  the  f^ovcrn- 
ment  bond  and  put  all  hi.--  >urplu^  ni(inc\-  into  ad\ertisnif;  or  nito 
a  bifjfjer  selling  or<;aiiizatiuii  or  other  means  ni  coumeractnig 
any  tendency  of  his  bu'-iness  to  contract.  If  this  \\ere  the 
result  of  the  ^Mnernnient  lo.in,  :t  would  ob\i(iu>ly  be  belter  to 
tax  them  both  e<|ually.  A>  to  what  would  be  done  by  the  aver- 
a,i;e  man  m  the  p<isiiion  of  A  or  i',.  we  can  only  conjecture  on 
the  ba>is  of  cur  knowleds^'c  of  the  nrdinary  economic  motives. 
Indixidual  ineii  react  in  \  ery  diti'erent  \\a\-s  to  the  same  situation, 
but  we  nui^t  expect  that  on  the  avera,i;e  and  in  the  lonj;  run,  a 
jar.s^er  number  will  react  in  the  direction  of  their  economic  in- 
terests than  in  the  oppo-ite  direction,  .\nionj;  the  iiuiltifariMus 
motives  th.at  attect  the  indixidual's  choice,  the  desire  for  gain 
i>  line,  and  a  iier.si-tent  one.  It  would  undnubtedly  be  to  the 
wheat  Mrmer's  economic  inierot  to  grow  more  wheat  at  a  linie 
when  there  is  a  great  demand  fur  it  and  it  is  selling  at  a  high 
price.  If  the  possession  of  a  tractor  would  gre.atlv  enlarge  his 
production,  he  wduld  ha\e  a  powerful  motive  for  desiring  to 
possess  the  tractor.  This  motive  would  also  be  supplemented 
l)y  the  |)atri<itic  motive  of  desiring  to  hel[)  in  the  supphing  or 
the  nation.  Therefore,  he  would,  in  all  jirobabilitv,  be  likely  to 
spend  as  much  money  ;is  he  could  part  with  for  a  tractor  rather 
than  f.)r  a  government  bond,  if  he  could  not  atford  both.  The 
same  principle  would  api)ly  to  every  one  else  in  the  position  oi 
.\,  that  is,  of  every  one  engaged  in  a  business  for  whose  product 
there  w  ,is  ,in  extreme  deni.and,  .\s  to  tlio-e  in  the  position  of  B, 
the  case  i'  not  ipiite  so  clear,  but  if  the  demand  for  confectionery 
is  actually  f.allmg  ot"f.  it  would  not  be  in  harnionv  with  T.'s  eco- 
nomic interests  to  invest  much  new  capital  in  his  business.  The 
(il)liorlunily  to  iinest  in  .a  government  bond  wa)uld  appear  to  be 
somewh.ai  more  iavorable  ,is  compared  with  the  op])ortunirv  to 
invest  any  new  capital  in  the  manufacture  of  a  commodity   for 


COMPUl.sCJKY    THkll'T 


40 


which  there  was  a  decrcasiiij;  demand.  A^ain.  the  motive  of 
patriotism  would  pull  in  the  same  direction  and  we  should  exi)ect 
that  a  large  ])roportion  oi  the  men  in  l>'s  situation  would  s])end 
their  surplus  money  on  j^overnment  securities  rather  than  in  the 
expansion  of  their  business.  Therefore,  it  looks  as  liiough  gov- 
ernment borrowing  would  be  m<jre  lle.\ible  and  les.s  mechanical 
than  government  taxation  as  a  means  of  raising  the  same  amount 
of  money.  The  impact  would  fall  where  it  woul.l  produce  on 
the  average  less  ..f  a  sliock  than  \\oulJ  be  true  in  the  case  of 
taxes. 

A  properly  developoii  and  administered  credit  system,  however, 
would  help  to  minimize  the  diii'erence.  If  the  function  of  bank- 
mg  was  conceiced  to  be  that  of  i'mancing  productive  enterprises 
instead  of  being  an  advanced  form  of  pawn-broking,  the  fact 
that  .\  had  an  opportunity  to  enlarge  his  production  of  a  much 
needed  product  would  itself  give  him  ample  credit,  assuming  him 
to  be  honest.  That  is,  it  would  be  the  function  of  his  banker  to 
linance  any  operation  of  A's  which  was  economically  sound.  If 
by  possessing  a  tractor  he  could  add  greatly  to  his  wheat  crop 
and  the  wheat  crop  was  sure  to  sell  at  a  high  price,  that  in  itself 
would  be  a  sufticient  basis  for  credit,  assuming,  again,  the  hon- 
esty of  A.  In  such  a  case  A  couUI  buy  his  government  security 
out  of  his  surplus  income  and  then  pay  for  his  tractor  out  of 
its  own  future  product.  However,  if  the  excess  profits  tax  were 
injudiciously  administered,  it  would  destroy  even  this  basis  of 
credit.  A  would  not  be  able  to  buy  his  tractor  either  out  of  pres- 
ent savings  or  out  of  future  income. 

There  are  certain  minor  qualifications  which  are  frequently 
urged,  but  which  have  little  or  no  validity.  In  the  first  place, 
it  is  urged  that  through  an  arrangement  with  his  banker,  a  man 
can  arrange  to  pay  for  his  government  bond  in  such  wavs  and 
at  such  times  as  are  mo-t  convenient.  wherca>  the  tax  collector 
is  less  accoinmotlating.  That,  however,  is  a  mere  matter  of  the 
administration  of  the  taxing  system.  If  government  officials 
were  less  arbitrary,  or  were  as  willing  to  meet  the  convenience  of 
citizens  as  a  private  agency  is  to  meet  that  of  its  customers,  this 


so 


WAK    TUKII  T 


Could  Ijc  arraiij,'ccl.  lV'rlKi])>,  however,  it  is  too  nuicli  to  cxpLit 
that  yuverniiieiit  otVuiaU  will  c-\cr  hcconic  >o  accoiiimoilaliii^  a> 
this.  Ill  that  case  one  ol  the  limits  oi  taxation  woiiKl  he  the 
arhitrariiie>s  oi  gu\eriiiiieiit  oiTicials  or,  perhaji^,  their  laziness 
or  iiiiw  illiiij^iiess  U)  take  the  tnmlile  iiei.es>ar\  to  accotiiiiujda'e 
the  pnhhe. 

Another  (|iialillcati()ii,  which  also  provo  to  he  imalid,  is  that 
while  men  niii>t  pay  their  taxes  m  ca>h,  the_\  can  hny  their  gov- 
ernment IhjiuIs  on  credit  through  the  hanks.  In  so  far  as  tins 
1-,  merely  a  de\  ice  through  which  the  purchaser  of  a  governniem 
hoiid  can  [lay  the  money  when  it  is  convenient,  this  is  co\  ereil  in 
the  preceding  i)aragrapli.  In  so  far  as  it  mean-  a  permanent  ur 
a  long  coiitiiuied  e.Ni)an>ioii  of  bank  credit.  ,so  that  men  do  not 
cut  down  their  purchases  of  goods  for  their  own  use  in  pro- 
portion as  they  lend  money  to  the  government,  it  works  hadlv 
rather  than  well.  It  merely  intlates  prices  and  forces  the  gov- 
ernment to  pay  larger  -unis  of  money  for  given  (|uantities  of 
supplies,  and  therefore  makes  increased  re\einie  in  the  form  of 
taxes  or  loans  necessary.  It  is  of  the  utino>t  importance  that 
if  the  horrowing  policy  is  adopted,  tho.se  wlio  lend  to  the  gov- 
ernment should  lend  out  of  savings  rather  than  through  the  cx- 
])ansion  of  their  credit.  Taxation  has  this  undouhted  adv.-mtage 
o\er  horrowing.  Taxation  can  not  possihlv  he  made  a  ha>is  for 
expanded  credit.  'I'hey  who  are  taxed  must  of  necessitv,  there- 
fore, pay  their  ta.xes  out  of  savings. 

There  is  another  (lualiticatioii  which  scarcelv  needs  discus- 
sion, since  even  the  most  extreme  advocates  of  the  taxation  pol- 
icy accept  it.  It  is  that  at  the  beginning  of  the  war.  vvhen  a 
large  revenue  is  immediately  required,  borrowing  must  of  neces- 
sity be  resorted  to  because  the  machinerv  of  taxation  is  slow  in 
its  operation  and  can  only  k'gin  to  yield  a  revenue  after  a  num- 
lier  of  weeks,  or  months,  or  possihlv  years  have  ])assed.  Hor- 
rowing is  the  only  method  by  which  the  treasury  can  be  kept  fr.ll 
during  this  initial  period. 

I  here  arc  few  who  advocate  a  policy  of  taxation  excliNively 
or  a  jjolicy  of  borrowing  exclusively.     Piactically  everybody  is 


COMl'lI.SOKY    THKIIT 


51 


af,'rccd  that  there  iiiiist  be  a  comliinatidn  of  Ixjth.  The  only 
clear  .liliVreuLe  of  opinion  is  as  tu  which  pohcy  should  receive 
the  pniicipal  emphasis.  Shall  we  encoiiraj^e  the  },'overninent  to 
tax  as  far  as  possible  and  borrow  only  that  which  is  iiecchsary 
to  supplement  the  inccjine  from  taxation,  or  .,hall  we  encourage 
the  government  U)  borrow;  all  it  can  and  then  raise  by  taxation 
whatever  is  necessary  to  supplement  the  income  from  that  source? 
Ihe  argument  that  the  government  can  not  raise  enough  revenue 
by  taxation  is  usually  urged  in  support  of  the  latter  policv. 
I'roperly  understood,  however,  it  seems  to  the  present  writer  that 
It  argues  more  strongly  in  favor  of  the  former  policy. 


CHAPTER  VI 


The  Opposition  to  War  Thrift 

Thf  sldWiK-ss  witli  whicli  lar^c  Ijodics  are  set  in  inotiDii  is 
often  adduced  a>  an  explanalioii  cl  the  time  spent  in  |itelmiinary 
discussinn  l)et(ire  action  can  Ix"  taken  in  a  K^eat  democracy,  l.x- 
cept  I)v  tlie  a'-snni[itioi;  of  almost  autocratic  powers  on  the  part 
of  the  aihnini>tration,  nothini;  etlective  can  he  done  in  a  de- 
niocracx-  until  a  majority  has  reached  a  conclusion  and  made  up 
its  mind.  This  is  usually  a  slow  process  and  tini^t  Ik-  jireceded 
liv  a  \  ast  amount  of  lunversation. 

Xext  to  such  \ital  (piestions  as  the  Imildin;;  up  of  our  army 
am!  na\y,  the  orv;anization  of  our  war  industries,  and  keepin;.; 
our  nalional  treasury  su[>plied  \\ith  the  mean-,  of  payin;;  the 
expenses  of  the  war,  no  (|iiestion  ha>  heen  more  widely  and 
vehemently  discussed  lh;ui  that  of  war  thrift.  Whether  our  peo- 
[)le  should  be  urtjed  to  reduce  their  consumption  to  the  neces- 
saries of  life  or  to  spend  their  money  freel\-  even  for  thinj.js  which 
they  do  not  need,  has  occupied  a  j^reat  deal  of  time  on  the  ])itlilic 
jilatform  an<l  considerable  s])ace  in  the  ephemer.al  jjress.  In  the 
free  atmosphere  of  a  puijlic  platform,  the  achocates  of  war 
thrift  have  had  thiiii^s  very  much  their  (5wn  wax:  hut  in  the 
controlled  ch.annels  of  the  public  press,  the  advocates  of  c\tra\a- 
<,'ance  have  been  favored.  Since  most  of  our  newspajjers  and 
magazines  live  mainly  upon  the  advertising  of  non-essentials,  it 
lias  seemed  at  times  as  though  such  influence  .as  thcv  ;ire  sup- 
posed to  exert  has  been  thrown  on  the  side  of  extr;i\  agaiice 
rather  th;m  of  thrift.  \'er\-  few  newspapers,  in  fact,  ha\e  been 
willing  to  publish  anything  in  support  of  thrift,  liut  their  col- 
umns h;i\"e  been  open  to  any  kind  of  an  argument  wiiicli  seemed 
to  supjiort  the  policy  "business  as  usual,"  "generous  buving,' 
"  keeping  inoiiey  in  circulation,"  and  so  forth. 


Tin:  (ippnsiTinx  to  \vak  thrikt 


53 


In  sp.tc  nt  nunicrnus  nnqualificl  requests  on  the  part  of  the 
I  resulent.  the  Secretary  nt  the  Treasury,  and  everv  one  else  in 
a  poMtM.n  ..I  K-reat  respnnsihihty  with  re>pect  to  the'war  that  the 
people  practice  thri.-,  dunn,^  the  war.  tlie  attitude  of  the  press 
.cnianied.   tlurinj,^  the  (ir.t  year,  hostile   rather  than    favorable 
It  was  no,  unt.l   'U,  pul,l,c  utterances  of  the  men  in  authoritv' 
supported  l.y  the  perMia>,on  of  n,ui,itu<les  of  speakers  on   the 
open  plattorm.  convnaed   the  hard-heade.l.  ciear-si.hted  puhhc 
tl.at  the  newspapers  were  wron.i;  and  that  the  advocates  of  thrift 
were  n^ht.  that  tlie  newspapers  generally  Rave  even  a  half-hearied 
support   to  the  thnft  canipaign.     Since  then   there   has  been   a 
gradual  n„.,h(,cation  of  the  tone  of  the  public  press      Tntil  late 
ni  the  sprnij,^  of  1018  the  characteristic  advertisement  in  anv  of 
our  larf,.e    ntetropolitan  dailies  warne.l  people  aj^ainst  too  nmch 
thrnt  and  adv.sed  them  to  buy  freely,  especiallv  of  the  particular 
article  mentioned  in  the  advertisement.     Since  that  time    many 
ot  these  a,Ivert,sements  have  containe.I  a  general,  abstract  en'- 
dorsement  ot   the   idea  of  thrift,   but  u.ged  the  bnving  of  the 
spechc  ar„cle  in  question  as  an  exceptional  case.     This  in  itself 
IS  a  very  .u-estive  ^vmptom  of  the  general  change  in  the  atti- 
tude ot  the  public.     The  reading  pubhc  has  in  some  wav  intlu- 
enced    the   attitude   of   the   editors.     Instead   of   leading  public 
-pm.on.   the  average  editor  tries   first  t(.  tin<l  out   what  public 
opnnon  sanctions  and  then  to  see  how  vociferouslv  he  can  advo- 
cate It.     ]  le  has  gra.lually  found  that  the  public  does  not  approve 
his  opposition  to  thnft  and  he  is  gradually  coming  around  to 
;i  reasonable  iiomt  of  view  with  respect  to  thrift. 

How  uncompromi>ing  an.l  arbitrarv  the  editorial  hostility  to 
thntt  was.  ,s  shown  bv  a  little  episode  whicJ!  occurred  in  Hos„,n 
early  ,n  the  year  10],X.  A  number  of  the  Boston  papers  had 
been  carrvin-  a  quarter-page  advertisement   which  came  to   be 


known  as  the  "  Wi 


and  "  Thev 


advein-ements.     The  adver- 


tisement was  a  general  .lenunciation  of  those  to  v\  h.mi  it  referred 
as  ••  Ihey.-  the  "  luiemy."  wh.j  were  urging  thrift,  anri  a  gen- 
eral sell-adulatu,n  ot  tho>e  who  referred  to  themselves  as  "  We  " 


who  advocated  generous 


i)u\-mir, 


keeping  money  in  circulat 


ion, 


54 


\V  \K    TIIKII  T 


cxp.iinim;,'  Iln>iIK■■^s  aii<l  so  (Ui.  It  ilid  iH't  ailvcrti^L'  aiivtliiiiL;  in 
]iartii.ular,  Imt  nri^cd  .^ciicn  iti>  and  lihc-ral  hiiuni;  ui  j^i'iicral. 
.\ut  "  liii>iiif>s  as  Usual,"  Init  "  lumc  l)\Hin(.'^>  than  vwr,"  \\a> 
a  part  dt  the-  general  cauipai^Mi  ni  c.\trava.i;aiKf  of  wlmli  tlii-.i.' 
a(l\iTliM.'nuiits  uiTc  samples.  A  iniiulicr  ni  lUi/i'iis  ni  C  am- 
lirid^f,  IcT'liUi,'  sMiucwhat  iiiconsi'd  liccausc  ui  tlu'sc  advcrtisi.- 
nicuts,  drew  ii|)  a  priiti.v-.t,  si'.^m'd  it.  and  sent  it  to  the  papers 
wliieh  were  publishing  them.  Xn  attention  was  paid  to  ttie  pro- 
test, but  the  advertisement-  enntinued  tor  a  short  tiiue  and  then 
stopped.' 

A  pulilic-.spirited  citi/en  of  r.rookline,  Mr.  Sinclair  Keuneds-, 
sought  to  counteract  the  effect  of  these  advertisements  by  asking 
the  papers  to  publish  extracts  from  addresses  by  President  Wil- 
son. Secretary  Mc.Xdoo  and  Mr.  i-'rank  .\.  \'anderlip.  This  was 
refused,  lie  then  offered  these  extracts  as  paid  advertisements 
at  regular  a<lvertising  rates  on  the  same  terms  as  the  "  We  "' 
and  '■  They  "  advertisements  had  been  published.  His  offer  was 
refused  by  several  of  the  p.ipers.  The  following  is  a  copy  of  a 
deposition  which  tells  the  story. 

i\)ry  or  ax  ai-i-id.-wit 

I,  Joseph  p.  Dr.npcr  of  Canton,  Massacluisctts.  on  oatli  depose  ami  say  tliat 

I  am  an  atlonuy  at  law  with  an  oltae  at   15   .State  Street.  Boston,  Massa- 

cliiisetts,   and    tliat   on   March   5,    I^IS,    .Mr.    Sinclair    Keiniedy   of    lirookhne, 

'The  Cainbrid[ic  Trthunc  pnlilished  it.     It  ran  as  follows: 

STKONC;  rRUTKST  .XCAIXST  TIIK  "  WK  AXD  THEY" 
.MJViRTlSlXC; 

We,  the  nndersipncd  citi7ens  of  Caniliriili;e.  protest  against  the  "We  and 
Tlicv  "  achertiscnieiits  which  are  appearing  in  \arioi;s  Boston  papers,  as  c.tI- 
rnlated  to  do  t;re;it  harm  to  our  ciuiiitiy  liy  interferimr  with  w.ir  thrift  as 
a<lMsed  hv  I'revidciit  Wilson.  Secretary  Mc.\(loo.  ami  .Mr.  V'amlerlip,  of  the 
war  sa\ings  committee. 

W       R.    Sl'.VLllING. 
T.     X.    CVKVEK. 

.•\.  H.  H.«T, 

W.  J.   V.    OsTERHlUT, 

RoL.usn  Tii.A.xTKR, 
^I.^RI.\   M.   C.MiOT, 

C.     H.    nc'LICK. 
V\\\.    II.    liANfS. 
n\V|S    R.    T)K«EV. 

Rkpkcxa  Ci-\kk  Wintkr. 


TIM     iin'OSITIO.V    TO    WAK    TIIIUFT 


55 


Mas.acluK.„,    re„.K.sl..,l   n,o   ,u   make   a  co,„ra.,   w„l,    i:,.-   Hoston    /■    w    a 
re«s|MpcT  p„l,I,sh.-l  ,„  It,,.,,.,,  for  ,l,e  p„l,l,ca„„„  ,„■  a  ht,  ,„    al       ,..,,! 

■Illl     I'K'  SIDINT 

111  Ills  ,i<,'ir.  •.,  ,,,  ,ln.   tanners, 
Jaiiuaij    Jl.   1<)\H,  ^ai,| 
"It  means  the  .Urnost  eouiomy.  ,v.„  ,„  ,1,,  ,„,„„  „.,„,,  „,^. 

;;5^^^::;:;;::;:;rr:;-:^-r;:!::::;-.;;;:;;:;.a^ 

Tin:  SKCRKTARV  OF  Till    TKF ASrRV 

In  a  statement  pi,l.li.lie,l  in  the  Offi,  „„•  /,■„//,.„„ 
Deceniher  JS,   Vn7,  sai,l : 
"The  people  of  the  rnitd  States  can  ren,ler  ,he  ,n,M  farr.achi,,,  pa,n. 
o.ic  se mce  h.v  refra,n.n«  from  the  purchase  „f  all  imnec.ssarv  art    L    -^n  1 

only  s„.J,  ,„„„,>  as  ,s  necr..ary  ,„  ,naintam  ,heir  health  an,l  WhaeiKy." 

THE  CHAIRMAN  Or  TllK  NATIONAL  WAR  S  \VIN(,S 
COMMITTEE 
At  the  Boston  City  Chih, 
iJecemher  3,   1917,  saiil': 
The  government   shonl.l   have   a   free   track   i„   ,l,e   workshop      It   slionld 
ha^e  lahor  which  ,s  not  compete,!  for  by  unnccessaiv  thin...      V  ? 

;^...  «e  can  a^ord  to  h.y  unnecessar^  thin«s:^:;:^:;:rhow^:;;";;'::: 

alf,.r,l  to  do  .t,  the  government  can  not  atTord  to  have  us  do  U  " 
He  declared  that  the  Secretarv  o     tl le  TrJ  ,     ,"■'   """"   "'"'"'   ^""'''"'y- 


56 


V.Ml    TIIRIIT 


ion  tliat  tlic  ailvertiicmrnt  wa»  a  liail  utic  ami  tliat  In-  woiilcl  v'<i  pulIIi^h  it. 

'I'li.it   l!if   iiiri'tiiuiiK  l^   the  siiljitaiicc  vi  tin*  tdc|ili(iiic  loiuiTsation  wlmh 
U-stiil  live  or  ten  ininuto-. 

In   Witness  Wuuctoi-    l   licriiiiito  M-t  my   liaiwl  tins  twiiiiy  mnlli  ilay  of 
April.  T'lM, 

(.'^i«iu'cl)  J.iM.i'H    1'    Drai'kr. 

SuliMTil'n'  ami  s«(irp  to  Iitforc  mr. 

(>IKIUcl)  lh.NR\      I.      l'l.KNll\M. 

(  Seal »  .Vc)/jry  I'ublic. 

My  C'lmini^siiiii  expire^  January   10.  I')i4 

TIr'  T'ldstDii  lIcraLi  aficptcil  the  a(lNt'rti>oiiieiU  aiul  entered 
intd  a  ;  ■ 'ti'rait  \iiili  Mr.  KeinuNly  to  |)iil>li-h  tlie  same  material 
a-,  a  (Hiarter-pa<,'e  adveriisenieiit.  It  was  to  [inlili  It  fmir  issues 
ill  all  at  .SJ3()  jier  issue,  reeeuin^  the  .Sl.OOi)  in  advance,  .\tter 
two  Issues  the  .uKertiseiiieiU  was  sto|i[)eil.  Later  on  $5t)<)  was 
rettinieti  to  Mr.  Kennedy,  lor  which  Mr.  Kennedy  gave  the 
receipt,  a  co])y  of  which  appears  on  paj^e  37. 

The  I'.-cniiui  Triinscript  alone  of  all  the  Boston  papers,  carried 
the  advertisement  through  four  i>^nes. 

While  federal  officials  and  all  those  in  positions  of  great  na- 
tional resp()n>il)ility  were  clear  in  their  acKocacy  of  thrift  as  a 
war  measure,  nnfortiinatcl  ■  main-  State  ot'ticials  and  members 
of  Ccnmcils  of  Defense  wire  moic  snsccptihle  to  the  inllnence 
of  local  protiteers.  The  Massachusetts  Coimcil  conNistently  re- 
fused to  take  any  jio-^ition  in  favo--  of  thrift  and  ;>nch  inthience 
as  it  e.xertcd  was  geiierally  again-.t  thrift. 

These  ca.--e::  ;ire  mentio:ird  not  because  I'.i  'on  newspapers 
were  more  \onal  or  less  lo\al  than  p.ipers  m  other  cities.  I'hey 
are  mentioned  merely  as  concret''  examples  of  a  very  general 
attitiule  on  the  p.irt  of  publications  e\crywhere  which  prosper 
largely  on  tlie  advertising  of  non-essentials.  The  I'hiladelphia 
I'ublic  I.cdijir,  in  the  miiKt  of  the  C'hri>tmas  .slioi)[iing  season  of 
l'>17.  even  went  to  the  length  of  publishing  an  article  by  Will 
I'.iMie  to  prove  that  there  was  no  such  a  thing  as  a  non-essential 
inilustrxl  Much  the  ^.ime  attitude  was  taken  by  the  .N'cTc  York 
Times  '  and  a  large  miriber  oi  others. 

'  Sci'  .-irtiole  111  the  i>suc  of  June  8,  V)\i,  entitled  "  liJison  Sees  Luxury 
\Var-\\  minny    i-orec 


3  =  9 

i 


J'. 


BosTon^ 


JLU_ 


_I»K 


No.328n9 


-"«  National  Shawmut  Bank     -« 

P*f  TO  Ta>  oioES  or 

-t-*CJ i:      ■  ■  ■    ii.-   Y 


,  0 1,1 


.UOLLAU 


Boston  Pi-iusano  Camvamt       /r 

Airt.  Trcutircr 


Feoelrt  U  h«r«by  aclmowledeod  of  five  hundred  (600) 
eonars,.p«ld  to  SlnclRlr  Kennedy  by  the  Bo.ton  Herald  end  Journal 
ror  fftlluro  to  cai ry  out   its  contract  to  publiih  In  Its   iscuee  of 
F.brM.Tr  26.   28.  March  2  and  5,   1918,   a  quarter  page  »ar,rtlieaent 
consiatlng  of  quotation,  from  Pre.ldert  Wlleon,  Treaturer  MoAdoo. 
and  the  Chairman  of  the  War  Savines  Comlttee,  .aid  adTertl.fment 
having  been  .topped  by  the  Herald  after  U.  .eoond  publication  on 
February  28,   191G, 

TTie  Boston  Herald  and  Journal  Joins  herein  In  aclaiow. 
ledsnent  that  the  .aid  sua  la  pold  and  received  on  account  of  the 
above  described  breach  of  contract,   and  in  full  of  all  claim,  on 
the  p;  rt  of  .aid  Kennedy. 


Bated    C^-<^ "-  igig 


Ui-^ci'^ 


/3-. 


'ci.**.,*^ 


^^^-^A^^^P^^ 


^o^i-i^ 


^ 


/%^.£^  62-^^^..k*^  €i 


^■'^■■'^. 


57 


-^ 


/:;x. 


58 


WAR    Til  RUT 


Duriui,'  the  -iiniimr  "f  1"17,  tin.'  writer  travcU'il  fnuii  tlic 
Allantir  Id  tlii.-  I'acilK'  t  na-l,  vr-itm^  a  larL;c  mimticr  dl  cities 
it!  all  -(.■iiiiii)>  111'  the  cniiiury.  In  nearly  escry  eity  visitctl  there 
ueie  |il.R.iiil>  ili-iila\e.l  iii  the  window:,  ni  retail  stores  warnni;,' 
people  :i,L;ain-t  t'ln  much  eeiMumiy.     The   I'dllowing  is  a  sample 


iirsiMSS  AS  rsi'Ai. 

r,i:\v AKi:  ov  tiikii-t  and  uxwisi-:  i-conomy 

M().\-i;v  i',Ri;i:i)S  mdnia' 


During  the  >;unimer  ni  191.S  tlie  writer  traveled  extensively 
between  the  Atlantic  Coast  and  the  Rocky  Mountains,  vi>iting 
mmuTous  citie>  in  all  the  intervening  sections  ol  the  country. 
X  )  >nch  ])lacar(U  were  seen. 

■[his  growth  of  pnlilic  opinion  and  general  change  ot  attitude 
on  the  part  of  the  newspapers  was.  of  coin>e.  not  universal, 
(."eiiain  -|)ecial  luihlications  which,  even  more  than  the  average 
iiew-pa])er.  live  on  advertising,  continued  to  tight  a  losing  hattle 
in  favor  of  high  pressure  selling,  and  the  "eiiicietu'"  persuasion 
of  jjcople  to  l>uv  things  which  tliev  did  not  need.  1  here  con- 
tinues also  to  Ije  sporadii  cases  of  jou.nais  \v  hose  editors  failed 
to  gra-p  the  situation,  and  kept  on  advocating  liheral  Inlying, 
and  refusi)ig  to  puhlish  anything  in  favor  f  tliritt.  'I  he  i  <ili- 
foniiit  Chib  iWniian  was  a  cons])icuous  example  of  this  \\\w. 
lUit  tliese  humiliating  exhiliitions  of  c(htor;;d  ignorance  need  not 
he  catalogued  further.  The  samples  given  are  enough  to  show- 
how  nianv  diverse  interests  there  are  in  a  great  democracy  to 
comiiete  with  what  ought  to  he  the  supreme  interest,  that  of  mass- 
ing ou.r  man-power  upon  the  war  and  the  war  industries. 

In  the  above  mentioned  article  in  the  Xcw  York  I'iiih's.  Mr. 
Kdison  is  alleged  to  ha\e  said: 

We  1  .  .ir  a  tjood  (lc:il  "f  t.ilk  almnt  liiMiiies.  I.iiNiiry  i';  :i  rci:itio'  term. 
What  is  iiixury  f'lr  iiiii-  iii.iii  is  alin.'St  a  nei-ossity  1.,  aTuitlur.  X.>  m.-ittcr 
wliat   is   said  nr  (iono.  the  incrciscd  cariMiii;  power  of   the   .\i'ieriean  pc  iplc 


Tin:    Ol'l'dM  HON    TO    WAR    TIIRIKT 


50 


1^  v;(ini«  to  result  in  the  iiKTca-cl  purchase  of  luxuries,  an,;  tlie  ur^e  to 
|«.-M-s  hiNuries  will  ,!,,  more  t.)  >iiee.l  up  pro.luaion  lli.in  all  tl  e  prize  eon- 
ti-ts,  1m,iiu>  plan.,  an.l  pn.claniatKins  il„,t  oan  lie  devised.  Tlu  laziest  and 
niovt^  iiMn-pniduLtue  man  m  -he  world  i>  the  m,iii  wlio.ve  u.uUs  are  the 
Muipiesi.  The  itliow  uli,,  lia.  a  laimly  ilia*  wants  lii.^uries  and  i.-  endeavor- 
ing lo  Kratily  them  i>  the  man  uho  i,  usually  wurkiiij,'  the  hardest  and  pro- 
diiiini;   tile  mo-t. 

Some  oi  >ou  may  have  hecn  tol.l  tliat  music  is  a  noii-c-sential.  .Mv  yiews 
on  that  snhject  are  prohahly  well  known  to  you.  The  time  i>  not  far' distant 
uhrn  miLsic  will  he  recomii/ed  as  a  .greater  essential  than  books.  Don't  let 
anyhody  make  you  believe  that  music  is  a  non-essential.  Merchants  who  sell 
good  musical  instruments  are  performing  a  useiiil  service  to  the  nation. 

The  ciniiHMit  sdMicc  ui  tliis  alli-c.l  statciiiuiil  entitle-  it  to 
some  0)iisi(leralioii.  That  Iii.xury  is  a  felative  term  is.  of 
course,  a  truism  It  funii.shes  a  vahd  art,'timciit  af,'ai:i.t  anv 
attempt  on  ihe  part  of  the  government,  or  any  other  coiiiptilsory 
pouer,  to  decide  upon  a  ]ist  of  hi.Nuries  and  to  jirohihit  their 
nse  or  consumption.  (;,,ven  n-iit  officials,  like  other  hum.m 
are  jjrone  to 


bei 


"Compound   for  sins  they   are  inclined  to, 
Hy  daimiiig  those  tliev  h.ue  no  mind  to," 

W  hat  they  wonld  decide  to  he  kixnri'.'s  would  very  likely  prove 
to  he  necessaries  f„r  some  one  else.  Again  whei'i  force  from 
withont  rather  than  persnasion  is  e.xeried  to  compel  a  man  to 
torcgo  the  consnmption  ..f  things  which  he  >ery  much  desires, 
the  chances  are  that  he  will  merely  have  one  less  motive  foi^ 
workin,^-.  I'.iit  the  case  is  tptite  otherwise  wl-en,  instead  of  per- 
emptory government  orders  prohibiting  the  nse  of  certain  things, 
the  indi\idnal  is  persuaded  to  care  more  for  national  defense, 
for  the  success  of  our  armies,  and  the  comfort  of  our  soldiers 
than  for  some  fonns  of  gratitlcation  which  he  previously  en- 
j(-yed.  This  does  not  reduce,  ' -it  rather  increases,  the  niimber 
of  motives  for  work.  Again  ;  ieaves  the  individual  free  to 
decide  what  are,  for  him,  the  u.ist  essential  or  the  least  desirable 
hi.xitries. 

The  truism  attril.nted  lo  Mr.  Kdison  thereiori-  fails  abso- 
lutely as  an  argument  .igaiiist  a  general  campaign  for  volun- 
tary thrift,  as  a  means  of  making  voluntary  loans  to  the  govern- 


6o 


WAR    TIIRIIT 


iiK'iit.  Such  a  canipaijjn  adds  ;i  lu-w  nintixc  U)  industry,  and  will 
tlu-fldR'  niakf  nifu  wnrk  liardcr  dian  i-\i'i'.  In  urdcT  to  t-nahlc 
the  iiuH\i(hial  tn  1)U\-  thu  new  artuk-,  thai  i-;,  a  j^ovcinnK'Ht  sc- 
curitv,  he  is  leit  tree  tn  decide  mr  hun-elf  which  one  of  his 
other  interests  he  must  ^acrIlice  in  order  to  satisi)  iIum  new 
interest. 

As  to  the  su^i^estion  tliat  music  is  an  essential  rather  than  a 
ii,,n-cssentia!,  the  reply  is  —  certainly,  so  also  are  coal,  wheat 
tlonr,  sli.ies.  clothing'  and  a  ni.inher  of  other  thini^s.  But  all 
essentials  slmuM  L-e  Used  -'n  nioderalion  and  not  ni  non-essenti.ii 
(luantitics.  To  sa\-  tiat  clo'hin^  is  essential  is  not  necessarily 
to  ini]ily  that  a  man  is  in^tifud  in  luiyini,'  tuenl\-.  or  ten.  cr  e\en 
two  new  suits  a  year  unless  he  really  needs  them  for  comlort 
and  (leceiicv.  l.ikcwi-e.  to  sav  that  music  is  essential  doe<  not 
neccssarilv  carry  with  it  the  conclusion  tint  it  is  essiiitial  in 
uiihmited  quantities.  'The  individual  who  siient  an  uionhnate 
am(}unt  of  time  or  nionev  in  the  passive  eiiio\nient  of  music 
could  scarcely  excuse  himself  hy  repealing  the  .general,  ahstract 
proposition  that  "  music  is  essential." 

However,  if  the  government,  or  any  other  authority,  sluiuld 
arhitrarilv  decide  that  all  music  was  non-essential  and  lorcihly 
lirohihit  it.  no  sensible  person  would  defend  such  ,in  action. 
I'.ut  when  the  government  urges  economy  ujion  all  the  ]ieople 
and  asks  them  all  to  turn  as  much  money  as  they  can  part  with 
into  the  puhlic  treasury  to  he  Used  in  national  defense,  -uch 
an  action  is  completely  defensible.  This  will  require  every  one 
who  responds  to  the  appeal  to  cist  about  to  see  where  he  can 
cut  down  his  expenditures  for  private  enjoyment  with  the  least 
hardship  \n  himself.  Some  may  even  tind  that  they  can,  with- 
out serious  loss,  spend  a  little  less  upon  music.  Others  will 
decide  upon  other  forms  of  saving.  an<l  thus  every  one  will  re- 
duce somewhat  that  form  of  consumption  which  is  to  him  most 
luxurious  or  le;ist  esseniial.  Any  one  who  would  oppose  such 
a  campaign  with  the  s;une  arguments  or  -tatements  that  he  would 
Use  against  an  arbitrary  ]irohil)ition  of  a  detinite  list  of  luxuries, 
would  show  verv  little  discrimination. 


1 


CHAPTER  VII 

The  Grounds  of  the  Opposition 

It  IS  lu-ccssnry  to  examine  in  some  detail  tlie  Rromuls  of  the 
opposition  to  the  ixiliey  of  war  thrift.  The  llrvt  objection  and 
the  one  most  fre(|uently  heard  is  that  unless  busmess  is  kept 
prosperous,  there  will  be  no  means  of  financing  the  war;  that 
is.  no  one  will  ha\e  the  money  with  which  to  pay  taxes  or  pur- 
chase government  bonds. 

To  begin  with,  that  proposition  attributes  a  power  to  money 
which  it  does  not  possess.  Money  does  no  fighting  and  can  not 
be  used  in  beating  an  enemv.  It  is  only  a  means  bv  which  the 
government  hires  the  men  and  buys  the  goods  which  are  effective 
m  war.  The  fundamental  and  ultimate  (|uestion  is  not,  there- 
fore, that  of  money,  but  of  men  and  materials.  If,  bv  keeping 
business  prosperous  is  meant  keeping  men  and  capitalemployed 
in  ;he  prewar  industries,  this  argument  would  defeat  its  own 
ends,  for  however  much  money  the  government  had,  it  could 
not  get  these  men  and  materials  without  taking  them  away 
from  some  of  the  non-essential  industries. 

It  IS  conceivable  that  a  war  might  be  carried  on  without  any 
money  whatsoever,  though  it  would  be  exceedinglv  difficult. 
That  i-,  if  the  government  could  sufficiently  perfect  its  machin- 
ery, it  could  commaiKker  everything  it  needed  and  could  con- 
script men  for  the  mines,  steel  mills,  the  munition  factories  and 
so  forth,  and  compel  the  whole  business  of  supporting  the  natiot 
and  waging  fhe  war  to  prcxeed  on  the  basis  of  a  direct  exchange 
of  goods  and  services  without  the  use  of  money.  While  this 
^\ou!(l  be  an  excec.lmgly  cluni.sy  way  to  proceed,  it  might  clarify 
our  ideas  a  little  if  we  s  uld  consider  what  woukl  be'' in\olve(i. 
Instead  of  having  a  government  Treasurv  to  receive  money  and 

6l 


02 


WAR     III  RUT 


|'a\  It  fiut,  wc  coiiM.  iKiilcr  llii-  a»nnn'(l  c.i-c,  ahdli^h  i1k-  "rfa-,urv 
and  greatly  ciilar^'c  ilic  o.  imiuilxny  pnwcrs  ni  the  War  Di'paii- 
iiKMit.  I  lii>  (Ii'|)aiiiiK-iit  cmilcl  put  the  wlinlc  ci\i!ian  pi.pulatu  .11 
uii  a  Miihtary  liaM>  ami  ilelail  iiicii  lur  (litYcrciit  kiiiil>  vi  work, 
anil  iMiiiiiiaiul  iiicii  and  wdinci!  U>  do  the  dilVcrcnt  tliiiif,'s  which 
are  nece»ary  lor  ihe  larivm-  mi  oi'  tlie  whole  national  ecoiioiiu, 
as  it  now  coinniantlN  >oIdici>  and  >ailor>  to  do  wliale\er  i>  nece^- 
.■>ar>  lo  cany  on  the  work  of  the  army  and  the  iia\  v.  In  that 
ta^e  we  could  ,:;et  rid  of  the  ilhi-ioii  xniietime-,  created  hv  the 
ii>e  of  money.  In  ,r,ch  a  ca>e  as  this,  no  one  would  douht  that 
in  Older  to  greatly  enlai\i;e  one  kind  of  work,  certain  other  kinds 
of  uiirk  would  have  to  he  diminished  in  (|uantitv.  The  wi-c 
ccjiiimander  would  coiieeiitraie  the  lar-ot  nuinher  of  men  on  the 
kind  of  work  uliere  the  lar,i,'e-t  iuimlH.'r  was  needed  and  the 
smalle-i  luimlicr  nf  men  where  llie  smallest  numher  wa,-.  needed. 
1  ln>  is  just  as  neces>ary  in  a  inoiK\  economv  as  in  a  moiiex- 
le.-'s  ecouoim. 

Another  ol.jcction  is  ha-^ed  on  the  proposiii<in  that  nionev 
lireeds  nioiiex  — that  it  is  only  when  nu  ;;ey  circulates  rapidlv 
that  there  i>  wealth.  'riii>,  hnue\Li,  put>  the  cart  hefore  the 
horve.  or  rexerse,-,  the  reiatniii  of  cause  and  effect.  While  money 
is  a  lal)(jr->a\  iiij;  de\ice  and  eiiahles  u>  to  do  husine-s  with  k-  ■. 
tnjuhle  than  would  he  nece-sary  if  there  were  no  nionev.  that  is 
hterall)  the  eml  of  ii>  usefulness.  It  neither  breeds  nor  Ix-ets 
111  aii\-  way.  It  is  a  tool  hy  means  of  which  we  accomph-h  more 
th;m  we  could  accomplish  witlujut  it.  It  circulate-,  in  re-poii-e 
tn  a  iKvd,  hut  its  circi.lation  does  mn  create  the  need  —  that  is 
U>  say,  it  li.as  no  power  either  to  increase  (jr  decrease  the  speed 
with  which  it  .  i\es  from  hand  to  h.ind  or  from  pocket  to 
pocket.  It  is  purely  pa~-i\e  an.l  moves  rapidly  wlicn  there  is 
need  that  it  should  move  rapidly  and  slowly  when  tiiere  i>  need 
tli;it  it  should  mo\e  slowl\-. 

'The  art,'umeiit  that  we  slmuid  spend  nionev  freelv  even  for 
thiii!,'s  we  do  not  need  in  order  to  make  ])ros|ieritv  is  i)recisclv 
like  the  position  of  the  little  L;irl  who  siieiit  her  missionary  money 


Till-:  (;r(H'.\iis  oi-   tiik  ui'i-cjsiTrdN 


63 


'..r  o.nlcrlinnc-ry  ,„  „r,l,r  ti.at  the  cuntcctmncrv  maker  >niKl,t 
Have  ,u.,noy  to  ^^ivc  t.,  tl,e  mi>M..„ary  cau.e.      Undoi.btcdlv  the 
cxi,nul,t,u-e  .,1   her  .I„ne  ,,m  a  ,lnne  i„   the  hands  ct   the'cu.,- 
U-ctionery  .lealer.      (Jut   oi    that   ,l„„e.   he   UM^hr   coiiceival^lv   ,t 
hf  were  so  ,h-,,ose<i,  g,ve  a  small  traetum  to  so,„e  pvthhe  cau.e 
II   Me  ha.l-onc„   u  directly,   the   uh.^le  dime  uoiild   have  -.„ne 
to  the  pubhe  cau>e.      W  l,e„   spent    for  a   tlntt^    uh.eh   ua.'^tot 
"fcessary.    ,t    tteuher    increased    her   oun    power   a.ul   ctttcencv 
tu.r  could   ,t  pn.siMy  help  the  treasury  of  the  puhhc  cau>e  as 
"luch  as  >t  would  if  she  ha.l  spent  it  herself.     Snnilarlv.  if  the 
l.r.vatc.  nt,.en.   instead  of   l.nyinR  a   ,o^ernment   bond,   should 
spend  HOO  tor  M.nte  n^  n-es^ential,  the  tnaker  of  the  non-essent.al 
uonl.l  be.  to  a  certaiti  extent,  prospere.l.  and  m'^i^hi  conceivably 
devote  a  small   fraction  of  the  .SlOO  to  the  purchase  of  thni't 
stauM-,  but  he  could  not  p.,.sibly  devote  the  whole  $100  to  that 
innp,,.e  because  I,e  must  spend  a  pan  of  ,t  to  h,re  men  to  make 
the  non-essent>al.     llirin.  men  t,,  make  the  non-essential  is  m 
effect  hirm-  them  to  stay  out  of  the  essential  mdu>tnes      I  et 
lis  suppose  that  he  would  make  a  profit  of  S5  at  the  end      In 
that  case  he  coukl.  if  he  felt  hke  it.  spend  $5  in  the  purchase  of 
thntt  stamp.      In  that  ca.>e.  $5  would  be  spent  bv  the  govern- 
ment m  hirm-  men  to  do  essential  thin-s.  but  $95  of  the  ^100 
w.)uld  be  spent  in  hirin-  „,e„  to  make  the  non-es<entials    '  Un 
tlic  other  hand,  if  the  ciitzen  had  spent  the  whole  $HX1  for  a 
governntent  bond,  the  whole  $100  would  then  be  available   for 
hirmg  men  to  work  in  the  e>>ential  industries.     From  the  stand- 
pomt  ot  winning  the  war,  the  countrv  would  he  ?95  better  off 
It  the  citizen  should  spend  his  whole  $100  for  government  bond, 
than  It  would  be  ,1,  through  the  medium  of  the  maker  of  non- 
essentials, he- indirectly  spent  $5  for  dirift  stamps  and  $95  to  hire 
somebody  to  cater  to  his  hixurinu^  ta>tes. 

As  was  pointed  out  in  Chapter  i|.  ,|,nf,  does  not  consist  in 
Iioardmg  money,  but  in  spending  it  for  ,he  more  important 
rather  than  the  less  important  things.  If  i,  is  desired  that  monev 
shall  circulate,  it  will  circulate  just  as  rapidlv  under  a  campaign 


64 


WAR    TIIRIIT 


of  thrift  as  iiiuliT  a  caiiipai-ii  df  i.\tra\af:aiu-c.  'I'lic  nnly  (lilYur- 
ciU'c  will  he  in  tliu  i.'hanin.'U  ihrniiL;h  wliuh  it  uill  circulate.  In 
a  cani|)aii;ii  i>i  thrift  it  will  circulate  in  --uch  \\a\^  as  tn  stimulate 
tile  essential  iiuhistries.  In  a  caiii|>aii;ii  i.f  extrava^'ance  it  will 
circulate  in  such  ways  as  to  stniuilale  the  non-essential  indus- 
tries. In  ilie  cainiiaiL.;n  of  tlinit  it  will  eniiilo\  just  as  much 
lahor  anil  liusiness  talent  as  in  the  canipaij^n  of  e.\tra\a^'ance. 
1  he  (liltereiice  will  he  that  under  the  thrift  cainpai^^Mi  it  will 
employ  iahor  and  luisiniss  talent  in  the  industries  which  lul])  to 
win  the  war:  whereas  in  the  cunpaitjn  of  e.\tra\  aj;ance,  it  will 
employ  them  in  the  iiulusfies  which  do  not  help  in  winning  the 
war. 

.\j,':iii),  it  is  ars^ued  that  if  everyliody  should  instantly  lie2;in 
economi/iiii;  to  the  hone,  it  would  take  husiness  ;i  Un]'^  time  to 
readjust  iiseli.  and  in  the  meantime  there  wi'uld  he  j;reat  eco- 
nomic distuihanre.  'I'his  argument  is  sound  so  f;ir  as  it  k""-""'- 
llowe\er,  iliere  is  little  danj^er  of  such  uni\ersal  and  instantane- 
ous ado]ition  of  the  jxihcy  of  thrift.  (  )ne  mii^ht  witlt  equal  wis- 
dom warn  a  recruiting  (jlVicer  not  to  urge  men  too  strongly  to 
vt)liinteer,  lest  every  (tie  should  volunteer  at  once  and  over- 
crowd the  ol'tices  ami  overwcirk  the  clerks.  Such  warning  would 
be  very  llattcring  to  th*?  eloquence  of  the  recruiting  otVicer,  hut 
not  many  recruiting  ot'licers  have  ever  heen  thus  overwhelmed 
with  volunteers.  .Again,  one  might  in  the  same  spirit  warn  an 
evangelist  against  preaching  rei)entance  too  fervently,  lest  the 
people  should,  under  his  persuasive  eloquence,  rush  t(j  the  front 
anil  overcrow  the  sawdust  trail.  The  danger  is  that  peo[)le 
will  he  too  slow  r.ither  than  too  prompt  in  responding  to  anv 
such  appeal.  I'niil  peo])le  show  signs  of  economizing  to  much, 
there  is  no  need  to  warn  the  adv(-:ates  of  thrift  against  the  fer- 
vidness  of  their  own  preaching. 

The  dawn  does  not  hreak  suddenly :  the  light  docs  not  strike 
every  mind  at  the  same  instant.  If  e\crv  one  to  whom  the  light 
of  ;in  economic  truth  comes  would  act  iiistantlv,  it  would  stili 
take  a  long  time  to  convert  a  whole  nation,  and  there  would  still 
be  dullards  enough  to  act  as  a  drag  on  the  process.      In  addition 


TiiF.  GRorvns  or  thf.  oito.sitio.v 


65 


to  this,  there  are  enoii<;h  false  teachers  and  clever  advertisers 
iirf^in-  pe()i)le  to  t;o  ,111  Iniyin;;  non-essentials  to  make  it  .ertain 
that  more  than  enoiij^h  will  be  hoii^'hl. 

It  can  not  be  too  often  repeated  that  mere  business  activity, 
regardless  of  its  direction,  is  no  indication  of  our  ability  to  sup- 
port the  war,  much  less  to  win  it.      It  is  the  direction  ..f  that 
luismess  .ictivity  quite  as  much  as  its  quantitv   which   will  de- 
ternnne   the  <|ue>t.on.     \\c  need   not   be  overawed   bv   what   is 
sometimes  called  the  efticency  of  the  (ierman   Kmpne  in  war 
tune.      1  here  is  nothing;  mysterious  or  awe-inspiring  about  it. 
lltr  workmen  are  no  more  skilful  than  <.nrs;  her  technicians  are 
no   better  trained;   her   inventors  are  not   so   numerous   nor  so 
nigenious.     She  has  gotten  most  of  her  inventions  from  other 
countries.     M.^re.ner,  aside  from  the  chemical  industrv,  in  which 
she  h.-.s   excelled  the   rest  of   tiie  world,    there   is  not   a    single 
large  industry  in  which  we  did  not  excel  Germanv  in  time  of 
peace.     She  has  led  in  a  few  minor  industries,  but  the  same  can 
Ix;  said  ot  every  country.     In  the  large  in.lustrics,  such  as  agri- 
culture, iron  and  steel,  copper,  the  manufacture  of  automobiles, 
and  a  number  of  others  which  ought  to  figure  largely  in  military 
efficiency,  we  led  the  w.^rld  in  time  of  peace.     And  vet,  we  seem 
woetully  slow  in  redirecting  this  vast  indu.strial  power  toward 
the  wmnmg  ot  the  war.     Up  to  the  present  time  ( julv,  1918) 
the  (.ermans  have  succeeded  in  massing  more  men  on  the  firing 
hue  :md  in  keeping  them  better  supplied  with  materials  than  we 
an<l  our  allies  have  succeeded  in  doing.     There  is  onlv  one  reason 
tor  this.     7/ic  Ucnnans  arc  not  doing  atixlhiiu/  else  r.vccf^t  make 
'<var.     They  are  not  dissipating  their  energies.     Thev  are  not 
wasting    their    man-p,nver   on    non-essentials.     Thev  'have    not 
ad.,ptcd  the  sl..g;.n  -  inisiness  as  usual."     Thev  have  masked  all 
their  man-power,  and  their  won,..u-power  as  well,  on  the  war 
and  the  war  industries  and  those  that  are  absoliitelv  essential  for 
the  sustenance  of  the  people.     That  policv.  and  that  alone    ac- 
counts tor  the  fact  that  they  have  been  able  to  support  such  "vast 
armies  and  keep  them  so  well  supplied. 

If  the  Germans  win  and  the  Allies  lose,  it  will  be  for  the  sole 


-f^^^:^  Jii 


66 


WAU    T UK  I  IT 


reason  that  tliev  bavc  ciu-cntratol  tlu-ir  national  cne-r.ijy  mi 
thf  war  and  the  uar  in.hiMra-,,  ulnlo  uc  have  di^Miiaivdnnr-, 
i.n  umna-ar.  lu\uni'>  mr  privati-  ^ciiMiiiiiitKin.  1 1  uc  uj,, 
and  the  (.iTtnan>  Ium',  ,t  uill  he  Inr  ihc  ~.<,k  u-a-in  tliat  we  liavc 
OMn-cntraicd  eiioii-h  nt  nu\-  national  i-nci-y  nn  the  war  and  the 
uar  Hidnstrie^  to  .unnunilaT  iheni  ,,n  the  Urni-  line  and  to  keep 
onr  >oldier>  belter  Mipphed  uiih  everytlnn-  uhuh  thev  need, 
l.\er>  (innce  oi  onr  national  ener.i^y  uhieli  ue  u^e  I'or  other  pnr- 
po>e>  i>  jn>t  so  niiR-h  w  itlidraw  ii  ironi  war  pnrpose<.  and  to  that 
extent  u  jeopardizes  tii.^  onteoine  of  this  war.  I'nless  the  <;ov- 
ernnient  a<lopi>  the  p.ilicy  of  nni^er^al  eon>eriptioii  of  labor,  the 
only  uav  in  which  we  ean  redirect  onr  national  enerj^rv  is  by 
redirecting  the  spendin-  of  mir  iiionev.  We  nuist  stop'  .spend- 
ing,' so  innch  of  onr  iiK.iiey  for  thinj^'s  which  ha\e  no  connecti.m 
with  the  war  ami  begin  spendin-  more  of  it  on  thiiij,'s  which  help 
win  the  war. 

If  one  wanted  to  1«>  thonni-ihly  disl,,yal,  it  would  not  be  neces- 
sary to  make  anarchistic  sjieeches  on  the  street  ct)rner  or  other 
pnbhc  i)laces,  ,,r  to  ur^e  men  by  w.ird  of  month  not  to  enlist,  not 
to  ^1)  iiitu  the  sinp\ards  or  the  inuiiition  factories,  and  not  lo  '^o 
onto  the  farms  to  help  produce  food.  Such  a  i)rocedure  would 
land  one  in  jail,  and  very  properly.  'I'Ir.  same  result,  however, 
c.Hild  be  achieved  in  other  ways.  (  )ne  can  hire  'iien  lo  stay  out 
of  the  shipyards,  out  of  the  munition  factories  and  off  the  farms 
by  hiring  them  to  make  tliiii<;s  which  are  not  necessarv  —  that  is, 
by  sjieiidinfj  „ne's  money  on  noii-esscntials.  One's  motive  ni.iy 
be  perfectly  iimocent  and  absolutely  free  from  dislovaltv,  and  yet 
however  pure  the  motive,  the  result  is  the  same,  1-norance  of 
economic  princiji' '^  is  sometimes  (|uite  as  destructive  as  dis- 
loyalt)-. 

L  sually  all  people  -pend  their  money  for  the  ihiiii^s  fnr  which 
they  care  most  and  deprive  themselves  of  the  things  f.,r  which 
they  care  least.  The\  wIk,  care  more  for  the  winning  of  the 
war  than  for  the  luxuries  which  they  might  inircha-e  with  their 
surplus  income  will  (piite  naturally  spend  iheir  nionev  for  tl  c 
winning  of  the  war  rather  than  for  the  purchasing  (,i  'these  lux- 


^  r>    "^  '"-^   -*^ 


Tin-:  GRoi-NDs  or  tiik  (iit(isitio\ 


67 


iiries.  But  ilicy  wlu.  laro  m,,rc  l,ir  luxuries  than  i..r  tlu-  uui- 
'im^  <>l  the  uai  will,  uiil,  i.,|„al  certainty,  continue  tn  .,,rn,l  ihe.r 
money  lor  luxuric- 

When  x\e  n..e.l  to  rea.l  how  Xen.  fuLlle,!  while  R,,nie  was 
I'nrnin-  ue  thought  what  an  inhuman  creature  lie  was  -r,»l-,y 
ihc  whole  world  ,s  on  (ire.  it  is  faciuf;  a  fjreater  <Iis,,.ter  than 
that  winch  threatened  Rome  when  Xero  luldled  There  are 
Xeros  auK.n.t;  us  wh,.  are  thinking  more  ahoiit  then-  own  pleas- 
ure than  ahout  the  present  sufferi„j,rs  of  the  xvorld  or  the  -reater 
disasters  which  threaten  tn  overwhelm  it 

Jl,  instead  of  lld.llin-  himself.  Xero  ha<l  hired  others  to 
jKldle  i..r  him,  the  case  w.nild  have  I.een  worse,  lie  would 
ha\e  w.isted  not  only  his  own  time  hut  theirs  as  wJl  when  all 
\\ere  nee.led  to  save  the  city.  Whether  l,e  hire,!  them  directlv 
or  indnectly  w.nild  have  made  little  difference  so  far  as  the 
ultimate  lesult  was  cncerncd.  Hither  metiiod  would  have 
\yasted  manpower  when  every  foot-pound  was  needed  tn  put  out 
the  lire 

No  one  will  douht  that  when  I  huv  something  I  am  indirectly 
I'TiiiK  some  one  to  make  it.     If  I   Iniv  somethiu-  for  mv  own 
pleasure  or  amusement  I  am  indirectly  hiring  some  one  to'plcase 
or  amuse  me.     This  is  no  hetter  than  to  hire  them  to  liddle  to 
me      Xo  one  would  have  I.lamed  Xero  for  fid.llin-  when  there 
was  notlimj,r  „,orc   important  to   he  done.     Neither  could  anv- 
hody  blame  me  I'or  hirin-  some  one  to  please  or  amuse  n.e  under 
like  circumstances.      n„t  when  every  foot-pound  of  man-power 
IS  needed  to  save  the  world  from  the  greatest  catastroplie  which 
ever  threatens  ,t.  I  woul.l  he  no  lietter  than  Xero  if  I  insisted  on 
IiTiii-  „,cn  to  make  trills  and  lu.xuries  for  mv  own  pleasure  or 
.■imuscment. 

Any  one  who,  in  these  days  of  impendiiii:  doom.  Inivs  any- 
thin-  which  he  does  not  need  for  Ins  own  health.  strenV'th.  or 
efficiency  in  the  production  of  e-^scntials  is  hirin-  some  one  to 
do  sMiiethin-  vdiich  is  unnecessary.  He  is  hiring  sonic  one  to 
stay  out  nf  the  essential  industries.     He  is  competing  with  the 


68 


\V\K    TIIKII'T 


j^'overnmcnt  fur  materials  an<l  maii-pdWiT  wliicli  it  m'v(\<  to  win 
tiR'  war  ,111(1  iiii'MiM-  till'  lilicrtK'^  nt  luaiiknii! 

.\(i(i  lulillfcl  lni.ui^c  III'  lau-il  Miiiii'  liii  ln>  own  aiiiu^tiiiLMil 
tlian  iiir  tin-  ■'al\alinii  of  tlic  niy.  lii'  cari'ii  iiinrc  !  n'  !ii>  own 
aniii-'iMiifnt  lucau^c  he  was  iliai  kiml  n{  a  man.  ^iinilail\.  it 
w  I'  Imv  nMii-i'-.-,t'iuiaU  iii  iIk'-'I.'  liiiio,  it  will  lie  1  ccati^i.'  wc  t.ire 
innia'  tor  the  por^diia!  i;ratitli'atMii  whuh  thev  lniii;;  than  Inr  the 
^;reat  luiiu  i]ik'-.  tnr  which  ihc  civilizi'd  wnrM  i>  linhimi;.  It  we 
care  mure  I'nr  the«e  personal  j^ratitieatimH  it  will  he  hecan^e  we 
are  that  kiml  di  penple.      W  ii.\T  kind  m-'  I'laii'i.i:  aki:  wi;? 

Septemher.    I'H.S. 


r  fr- 


:iv      --;-*.: 


t4»>  f. 


"*K 


